Historical Volatility Definition

Historical volatility measures how much an asset's price has fluctuated over a specific past period.

What is Historical Volatility?

It is typically calculated as the standard deviation of past price returns over a chosen timeframe.

Historical volatility is used to assess an asset's risk profile and to compare it against implied volatility.

A stock whose price has swung widely over the past month would show high historical volatility.

Hawkish describes a central bank or policymaker stance that favors higher interest rates to control inflation.

A hedge fund is a pooled investment vehicle that uses a range of strategies, often including leverage and derivatives, to generate returns.

Hedging is a risk management strategy used to offset potential losses in one position by taking an opposite position in a related asset.