Financial market volatility is defined as the rate at which the price of an asset rises, or falls, given a particular set of returns.
Investors can use this data on long term stock market volatility to align their portfolios with the associated expected returns.
Formula to calculate daily volatility.
Variance in this case, is the variance of the stock price.
Example:
Suppose you calculated the stock price variance and found it to be 625. Calculate the daily volatility.
Therefore, the daily volatility is 25.
