asset volatility

asset volatility UK US noun [U] FINANCE
the rate at which the price of an asset moves up and down: »

The improvement in credit quality reflects higher stock prices and lower asset volatility.


Financial and business terms. 2012.

Look at other dictionaries:

  • volatility — A measurement of the change in price over a given period. It is often expressed as a percentage and computed as the annualized standard deviation of the percentage change in daily price. Chicago Board of Trade glossary The rate of change in a… …   Financial and business terms

  • Volatility clustering — In finance, volatility clustering refers to the observation, as noted by Mandelbrot, that large changes tend to be followed by large changes, of either sign, and small changes tend to be followed by small changes. A quantitative manifestation of… …   Wikipedia

  • Volatility swap — In finance, a volatility swap is a forward contract on the future realised volatility of a given underlying asset. Volatility swaps allow investors to trade the volatility of an asset directly, much as they would trade a price index. The… …   Wikipedia

  • Asset allocation — is a term used to refer to how an investor distributes his or her investments among various classes of investment vehicles (e.g., stocks and bonds). A large part of financial planning is finding an asset allocation that is appropriate for a given …   Wikipedia

  • Volatility Arbitrage — Trading strategies that attempt to exploit differences between the forecasted future volatility of an asset and the implied volatility of options based on that asset. Because options pricing is determined by the volatility of the underlying asset …   Investment dictionary

  • Volatility — A measure of risk based on the standard deviation of investment fund performance over 3 years. Scale is 1 9; higher rating indicates higher risk. Also, the standard deviation of changes in the logarithm of an asset price, expressed as a yearly… …   Financial and business terms

  • Volatility — 1. A statistical measure of the dispersion of returns for a given security or market index. Volatility can either be measured by using the standard deviation or variance between returns from that same security or market index. Commonly, the… …   Investment dictionary

  • Volatility risk — The risk in the value of options portfolios due to the unpredictable changes in the volatility of the underlying asset. The New York Times Financial Glossary …   Financial and business terms

  • volatility risk — The risk in the value of options portfolios due to the unpredictable changes in the volatility of the underlying asset. Bloomberg Financial Dictionary …   Financial and business terms

  • volatility index — /vɒləˈtɪlɪti ˌɪndɛks/ (say voluh tilitee .indeks) noun Stock Exchange a measure which provides an estimation of the expected volatility of certain asset classes, commodities or currencies over a nominated period, based on option prices. Abbrev.:… …   Australian English dictionary


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