Why Volatility is Important for Investors
Next, take the square root of the variance to get the standard deviation. This is a measure of risk and shows how values are spread out around the average price. It easymarkets review gives traders an idea of how far the price may deviate from the average. By utilizing this methodology, investors should be able to easily generate a histogram, which in turn should help them gauge the true volatility of their investment opportunities. Volatility Ultimately, the perception of volatility as good or bad is influenced by your trading approach and your level of comfort with risk. Unforeseen incidents, such as natural disasters, corporate scandals, or sudden technological breakthroughs, can introduce immediate shocks to the market. The recent history of...
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