Risk

Volatility

Definition

A statistical measure of the dispersion of returns for a given security or market index. High volatility means large price swings; low volatility means stable prices. The VIX index measures expected volatility of the S&P 500.

Related Terms

Beta

A measure of a stock's volatility relative to the overall market. A beta of 1 means the stock moves with the market. A beta greater than 1 means more volatile; less than 1 means less volatile. A beta of 0 means no correlation.

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