Volatility is a statistical measure of the degree of variation in a security’s price over time. It is often used as an indicator of risk, with higher volatility indicating more significant uncertainty and potential for larger price swings. Traders can use volatility data to understand the potential risks and rewards associated with a particular security or trading strategy and to adjust their positions accordingly. By tracking volatility over time, traders can identify patterns and trends in market behavior and make more informed decisions about when to buy, sell, or hold a security.
Here is a collection of formulas for analyzing volatility, completed in Google Sheets: