Definition of Volatility in the Financial Dictionary - by Free online English dictionary and encyclopedia. What is Volatility? Meaning of Volatility as a finance term. Definition of volatility: Chemistry: Rate at which a chemical will evaporate. Volatility increases with temperature and decreases with pressure. Latin for, to fly. Define volatile: likely to change in a very sudden or extreme way — volatile in a sentence. Find this comment offensive? James Poulos September 19, Yield varies between investment period and return period. We know from talking to our global customer base that effectively managing risk between realised and implied volatility , correlation arbitrage, and hedging the volatility of their portfolios with currencies are vital. Categories Glossary Economy Equity Insurance Budget Marketing Mutual Fund Space Technology Testing Human Resource Finance Real Estate Security Sports Commodity Software Development Analytics HR Entertainment Retail Shipping Astronomy Transportation Education Mathematics. Get Free Newsletters Newsletters. An implied volatility is derived from the market price of a market traded derivative in particular an option. Wörterbuch Apps Nutzen Sie unsere Wörterbuch Apps — Ihnen werden nie wieder die Worte fehlen! Incidence and prevalence are two commonly misused terms that can be confusing to many people. Journal of Portfolio Management 33 4 , For any fund that evolves randomly with time, the square of volatility is the variance of the sum of infinitely many instantaneous rates of return , each taken over the nonoverlapping, infinitesimal periods that make up a single unit of time. My Account Sign in with Google Sign in with Facebook or, sign in with email. Our graph shows that the volatility of GDP growth has increased during the current recession. The travel agency encouraged the couple not to travel to Greece, as the government situation in that country was volatile and unpredictable from one day to the next. Expressed often as a percentage, it is computed as the annualized standard deviation of the percentage change in the daily price. The Purcell Papers Joseph Sheridan Le Fanu. Delivered to your inbox! But given the volatility of the last week, how long will that last?