Market volatility is a statistical measure that tracks how much asset prices deviate from their benchmarks or averages. It shows how dramatically stock prices and other financial assets can swing up or down. The more extreme and frequent these price swings are, the more volatile the market becomes.
There are two types of market volatility:
Rising HV should make you cautious. It often signals that something significant has happened - or is about to happen - with the asset. When HV falls, it indicates the market is becoming more stable.
Learn more about volatility calculation methods in our blog.