Portfolio Analytics

Historical Volatility

Definition

What is Historical Volatility?

Volatility calculated from past price or return data.

Example in practice

The analyst measures the standard deviation of daily returns over the last year.

Keep learning

A statistic ranging from minus one to plus one that describes how two return series move together.

A relationship in which two assets tend to move in the same direction.

A relationship in which two assets tend to move in opposite directions.

An analysis of portfolio performance under severe but plausible scenarios.

Think you know your investing terms?

Put your knowledge to the test with a quick quiz.