Volatility
The dispersion of an asset's returns, usually measured as the annualized standard deviation of daily changes. High volatility means bigger swings in both directions — more opportunity for strategies that harvest movement, more pain for strategies that hold through it. Realized volatility measures the past; implied volatility (as in the VIX) is the market's forecast.
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Related terms
VIXThe Cboe Volatility Index: a measure of the S&P 500's expected 30-day …Sharpe RatioAverage excess return divided by the volatility of returns — return pe…DrawdownThe percentage decline from a portfolio's (or asset's) peak value to a…
Backtests are hypothetical, computed by DeployQuant's engine on minute-resolution consolidated US market data (2021-01-04 to 2026-07-17, $10,000 starting capital, no margin, fees and slippage not modeled) and do not guarantee future results. Nothing on this page is investment advice. Live trading involves risk of loss.