Published On: Mon, Apr 8th, 2013

Historical Volatility

Also known as “statistical volatility”, historical volatility means the realized volatility of a certain financial instrument and measuring how much the deviation occurs from the average price during said time.

The most common way to calculate historical volatility is by using standard deviation. Related to Correlation where in a financed based definition, this is a study of statistics to measure how two securities move in relation to one another. Such correlations are often used in the management of advanced portfolios.

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About the Author

- Marcus Holland has been trading the financial markets since 2007 with a particular focus on soft commodities. He graduated in 2004 from the University of Plymouth with a BA (Hons) in Business and Finance.