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20 Responses to “Intro to Quant Finance: Volatility”
Hello- I thought volatility is on annualized basis or annualized stddev. If these are daily returns, then would’nt you have to multiply it by 52 to annualize it? Let’s say, we have exactly 7 years of data on weekly basis. Will we not multiply the std dev with 52 to annualize it? I am getting the impression from this video that std dev by itself is Volatility, which is not how I understood it. Can you please elaborate on that as I will really appreciate the clarification.
he doesn’t have dec-9 shown, but I assume he would take the natural logarithm of google’s close on dec 10 divided by google’s close on dec 9 … =ln(B8/B7)
Listen brain person, the word volatility is a word explained in detail in the dictionary. Amongst the usages listed there is being a measure of fluctuation, unpredictable change, etc. So if you have a problem, take it up with the scholars that keep track of what is and isn’t part of the language we speak. Please stop embarrassing yourself.
Maybe it’s not clear to you, but my video is about financial volatility not chemistry. Even in finance, volatility has five (5) different definitions. One of my pet peeves is the tendency, sometimes borne of academic hubris, to assume that some words are “owned” and/or concrete. To use stable here would be utterly confusing. Only the Ego wants to confuse. Humpty Dumpty the wise egg said, the word means what I choose it to mean…
One of my pet peeves is the way finance and business types flagrantly disregard the proper scientific definition of terms and hijack them to their own use.
“Volatilty” is simply a measure of a liquid’s readiness to boil – ie a low or a high boiling point. Or it can refer to a chemical’s readiness to react.
It has NOTHING to do with the fluctuation! The word they should have used is “Stability” not “volatility” – but ohhh noooo – that would just be too plain for the precious ponces of finance!
April 12th, 2010 at 5:56 pm
@rober2eduardo I wouldn’t say that, but nobody watching this would be what I consider competition…
April 12th, 2010 at 6:33 pm
That’s actually good!!! Less competition for THOSE who WANT TO BE QUANTS OR ARE ALREADY QUANTS!!!
April 12th, 2010 at 7:00 pm
why are quant finance videos so boring? is that cause nobody wants to be a quant?
April 12th, 2010 at 7:57 pm
Hello- I thought volatility is on annualized basis or annualized stddev. If these are daily returns, then would’nt you have to multiply it by 52 to annualize it? Let’s say, we have exactly 7 years of data on weekly basis. Will we not multiply the std dev with 52 to annualize it? I am getting the impression from this video that std dev by itself is Volatility, which is not how I understood it. Can you please elaborate on that as I will really appreciate the clarification.
April 12th, 2010 at 8:15 pm
damn he treated ur azz chemist lady…this is fatty from naperville woooo woooo
April 12th, 2010 at 9:00 pm
is there a formula for instnteneous volatility?
April 12th, 2010 at 9:09 pm
he doesn’t have dec-9 shown, but I assume he would take the natural logarithm of google’s close on dec 10 divided by google’s close on dec 9 … =ln(B8/B7)
April 12th, 2010 at 10:01 pm
How did you calculate the Compounded ROR at [C8]?
April 12th, 2010 at 11:01 pm
you really explain things so well!!!
April 12th, 2010 at 11:31 pm
Listen brain person, the word volatility is a word explained in detail in the dictionary. Amongst the usages listed there is being a measure of fluctuation, unpredictable change, etc. So if you have a problem, take it up with the scholars that keep track of what is and isn’t part of the language we speak. Please stop embarrassing yourself.
April 12th, 2010 at 11:32 pm
nice, many thanks, I am a chemist
April 13th, 2010 at 12:27 am
Maybe it’s not clear to you, but my video is about financial volatility not chemistry. Even in finance, volatility has five (5) different definitions. One of my pet peeves is the tendency, sometimes borne of academic hubris, to assume that some words are “owned” and/or concrete. To use stable here would be utterly confusing. Only the Ego wants to confuse. Humpty Dumpty the wise egg said, the word means what I choose it to mean…
April 13th, 2010 at 1:02 am
Whatever – it still meant “unstable”. Not “fluctuational”
April 13th, 2010 at 2:01 am
Saying something is ‘volatile’ does not automatically infer that you are speaking about chemistry. The word existed before chemists used it.
April 13th, 2010 at 2:26 am
One of my pet peeves is the way finance and business types flagrantly disregard the proper scientific definition of terms and hijack them to their own use.
“Volatilty” is simply a measure of a liquid’s readiness to boil – ie a low or a high boiling point. Or it can refer to a chemical’s readiness to react.
It has NOTHING to do with the fluctuation! The word they should have used is “Stability” not “volatility” – but ohhh noooo – that would just be too plain for the precious ponces of finance!
April 13th, 2010 at 2:43 am
Nice introduction. Thanks, Kukan
April 13th, 2010 at 3:22 am
very nice.. brow…
Denmark
April 13th, 2010 at 3:46 am
very straightforward. Thank you very much
April 13th, 2010 at 4:24 am
very very good explanation. thank you
April 13th, 2010 at 4:38 am
You are really great..
High 5 bro….
Mahyar, Denmark