Realized volatility quantifies an asset's actual price fluctuations over a specific past period, calculated from high-frequency returns. Unlike implied volatility, it reflects historical movement, making it crucial for risk assessment, options pricing, and portfolio optimization. Traders, quantitative analysts, and risk managers use it to gauge market turbulence, backtest strategies, and refine hedging decisions based on observed market behavior.
Get alerts when this topic surges in newsletters. Free to start.
Sign up freeExplore more trends:Trending Topics ·AI Trends ·Business Trends ·Finance Trends ·Technology Trends