How violently a price swings
Volatility measures how much a price moves up and down. Higher volatility means bigger moves in less time, so both gains and losses swell. For the same expected return, lower volatility means a calmer ride. Volatility tends to rise around earnings reports and major news.
On $10,000 invested, a stock that moves 1% a day swings $100 while one that moves 5% swings $500.
For learning, not investment advice. Decisions are your own.
StockFit · TrueNorthLabs Inc.