What is Volatility?

The simple answer is the standard deviation of periodic returns. This video takes some sample data for closing prices of a stock and demonstrates how volatility is calculated in Excel.

In finance, such as for price series, usually log returns are used, where log is the natural logarithm.

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Accelerate your finance career with cutting-edge data skills.

Join Finance Train Premium for unlimited access to a growing library of ebooks, projects and code examples covering financial modeling, data analysis, data science, machine learning, algorithmic trading strategies, and more applied to real-world finance scenarios.