For over 20 years, I have used two primary technical tools to measure both volatility and risk: Bollinger bands and Starc bands.
Returns are smoothed and volatility (risk) declines when a portfolio is diversified.
Moody's said these companies experienced problems with volatility and risk management, while their financial "shock absorbers" are in some cases thinner or less reliable than their peers.
Over the past decade investors, firms and consumers put far too much faith in the power of information technology, globalisation, financial liberalisation and monetary policy to reduce volatility and risk.
Simply watching the VIX has failed traders in recent years, and technical tools like Bollinger bands and Starc bands have proven to be more effective measures of volatility and risk.
Federal Reserve Chairman Ben Bernanke warned of continued strain on the U.S. economy and noted the negative impact of elevated volatility and risk aversion in the financial market during testimony before a joint committee of Congress Tuesday.
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"As the financial markets recover from this period of stress, as of course they will, we should expect continued volatility as risk is repriced, " Paulson told reporters after meeting his counterparts from the world's seven richest nations.
Morningstar.com: Free materials on this site include ETF spotlight articles, volatility and risk ratings for various ETFs, total returns for funds going back as far as 15 years and portfolio breakdowns by individual securities, as well as sectors.
The remaining yield on longer-term bonds is a risk premium that is commensurate with U.S. interest-rate volatility (Japanese risk premiums are lower, but they also have nearly zero interest-rate variability).
Examining regional volatility and geopolitical risk more carefully, and putting in place strategies to contain their financial cost and impact.
This is done by extrapolating a company's earnings out five years, then weighing its expected earnings and dividend streams against its historical stock price volatility (reflecting risk) and the AAA bond yield (reflecting opportunity cost).
As correlation with U.S. equities and risk assets fall in tandem with stronger demand, particularly ahead of the Chinese Lunar New Years, gold could be moving toward the safe haven side, positioning the metal well ahead of market volatility and political risk.
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But I suspect, for many investors, risk and volatility are always and everywhere interchangeable.
But the biggest problem with a floating currency remains the risk of volatility.
Diversification and regular rebalancing may decrease the impact of market volatility, but the risk of losing money will still exist.
The lower average rating and longer maturity range of the Vanguard index give the fund a higher yield, risk and volatility.
As the sovereign debt crisis moves back to the front pages, there will be increased volatility with periods of risk-on and risk-off.
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The problem is, that investors fail miserably when they follow the leader, if they ignore the risk and volatility of these investments.
Mr Granger's research was aimed more at coming to grips with longer-term swings in economic growth, inflation and currencies than with shorter bouts of risk and volatility.
Junk bonds, basically high-risk debt, once a popular way to speculate rather than invest, will not be considered in this article because of their volatility, unpredictability and risk.
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The key to withstanding the urge to respond to short-term market swings is establishing a portfolio with a level of risk and volatility that you can tolerate that diversifies investments across U.S. stocks, U.S. bonds, and international stocks at a minimum.
Benchmark chasing also causes undue stress with clients unnerved by the inevitable gyrations of a benchmark, rather than being focused on an approach that strives to make regular progress on the achievement and ultimately realization of their goals with the least amount of risk or volatility to meet their personal goals and objectives.
Portfolio theory defines risk only as volatility, or the extent to which returns can vary from average.
Risk is the volatility of an investment as measured by standard deviation.
Calpers' review in February looked at a range of issues, including labour practices, political risk, market volatility and regulation, and investor protection.
The quite popular Black-Scholes calculator figures the value of warrants using current price, strike price, time until expiry, interest rate risk and share volatility as variables.
But they usually are the shares of companies that are more stable and better managed than the highly visible, high-risk and high volatility stocks, he adds.
"Frequent and large reassessments of risk and high volatility in asset prices are likely to remain a part of the scene for some time, " it explained said.
Financial planners use the term risk tolerance in assessing how much volatility or fluctuation of principal an investor is comfortable with, knowing that all investments have some degree of risk and most investments fluctuate in value.
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At the same time, the volatility of gas prices remains a risk, particularly if they rise too fast, according to Barclays.
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