Markets & trading2 min read
VolatilityGerman: Volatilität
Volatility measures how strongly an investment’s returns fluctuate around their average over a period.
In plain language
It is often expressed as annualised standard deviation. High volatility means larger upward and downward movements. The period and data used strongly affect the measure.
Let’s make it concrete
An asset with large daily price swings is typically more volatile than one with small, steady movements.
Simplified example for illustration.Worth understanding
Low measured volatility does not prove an investment is safe. Rare defaults and missing market prices can distort the picture.
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For further learning and reference:
Financial education for orientation. No individual investment, tax or legal advice.
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