Volatility Primer 4: Asset Values With Higher And Lower Volatility
Assets with a lower standard deviation, or volatility, have less variation in their return than assets with higher volatility. Below is a plot of the asset values over time of two assets with equal return and different volatility. The asset with lower volatility has less variability in performance.
The information presented here is the opinion of the author and may quickly become outdated and is subject to change without notice. All material presented in this article are compiled from sources believed to be reliable, however accuracy cannot be guaranteed. No person should make an investment decision in reliance on the information presented here.
The information presented here is distributed for education purposes only and is not an offer to buy or sell or a solicitation of an offer to buy or sell any security or participate in any particular trading strategy.
Performance data showing past performance results is no guarantee of future returns.