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Futures & options
How much the underlying actually moved, looking backwards. Compared with IV it is the 'realised' side of the same idea.
Annualised historical volatility = Standard deviation of daily log returns × √252
A stock whose daily returns have a standard deviation of 1.5% has an annualised historical volatility of about 1.5 × 15.9 ≈ 24%.
How much the underlying actually moved, looking backwards. Compared with IV it is the 'realised' side of the same idea.
Annualised historical volatility = Standard deviation of daily log returns × √252. A stock whose daily returns have a standard deviation of 1.5% has an annualised historical volatility of about 1.5 × 15.9 ≈ 24%.
No. Historical volatility describes one aspect of a company, a price or a contract, and it is best read alongside other numbers and the business itself. Jivani Markets is a research and education platform; it does not give buy, sell or hold recommendations.