volatility (symbol σ) is the degree of variation of a trading price series over time. (wiki/Volatility_(finance))
The formula for daily volatility is computed by finding out the square root of the variance of a daily stock price.
The term “volatility” refers to the statistical measure of the dispersion of returns during a certain period of time for stocks, security or market index.
The formula for daily volatility is computed by finding out the square root of the variance of a daily stock price.
Daily Volatility Formula is represented as,
Daily Volatility Formula = √Variance
Further, the annualized volatility formula is calculated by multiplying the daily volatility by a square root of 252.
Annualized Volatility Formula is represented as,
Annualized Volatility Formula = √252 * √Variance
