Historical Volatility (HV)

Posted by Mr. P | Formulas | Tuesday 13 January 2009 1:32 AM

Historical Volatility (HV) is used to see the volatility of a security over a period of time. Usually the higher the Historical Volatility the more risky the investment.

Historical Volatility (HV) can be calculated using the following equation:

HV = (52 week high of the security - 52 week low of the security)/Average(52 week high of the security + 52 week low of the security)

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