Price Volatility

Definition

Price Volatility. A statistical measure of the rate of change in pricing for a given security or market index

Volatility can be determined using the standard deviation or variance among prices for the security or market index over some period of time. For a specific security, volatility may measure the amount and frequency in rapid price fluctuation. It is computed as the annualized standard deviation of the percentage change in a security's daily price.

Issues and Challenges

Volatility is modeled here using a structured collection, comprised of a series of individual prices of something (a security, index, etc., typically quoted prices), dates, and the source for those prices for some overall period of time

Disclaimer

This entry annotates a FIBO Ontology Class. FIBO is a trademark and the FIBO Ontology is copyright of the EDM Council, released under the MIT Open Source License. There is no guarantee that the content of this page will remain aligned with, or correctly interprets, the concepts covered by the FIBO ontology.