Volatiilit

Volatility refers to the degree of variation in the returns of a financial asset or portfolio over time. It is a measure of risk and is often used to assess the stability and predictability of an investment. High volatility indicates that the asset's price fluctuates significantly, while low volatility suggests more stable price movements. Volatility can be influenced by various factors, including market conditions, economic indicators, and company-specific news. Investors often use volatility to make informed decisions, balancing the potential for higher returns with the risk of greater price swings. Volatility is typically measured using statistical methods, such as the standard deviation of returns, and is a key component in risk management and portfolio construction. Understanding and managing volatility is crucial for achieving long-term investment goals while minimizing potential losses.