turuvolatilused

Turuvolatiilsus refers to the degree of variation of a trading price series over time, as measured by the standard deviation of logarithmic returns. It is a measure of the risk associated with an asset or market. High volatility means that the price of an asset can change dramatically over a short period, while low volatility means that the price tends to remain relatively stable.

Volatility is a key concept in finance and is used by investors and traders to assess the risk of an investment. It is also used by option pricing models, such as the Black-Scholes model, to determine the fair value of an option.

There are several ways to measure volatility, including historical volatility and implied volatility. Historical volatility is calculated using past price data, while implied volatility is derived from the prices of options.

Factors that can influence turuvolatiilsus include economic news, political events, and investor sentiment. For example, a sudden announcement of an interest rate hike by a central bank can lead to a sharp increase in volatility as investors react to the news. Similarly, geopolitical instability or major corporate earnings announcements can also trigger significant price swings.

Understanding turuvolatiilsus is crucial for making informed investment decisions. Investors may seek to diversify their portfolios to mitigate the impact of high volatility in certain assets. Traders may use volatility to identify trading opportunities, as large price movements can present potential profit margins. However, high volatility also entails higher risk, and not all market participants are comfortable with it.