Volatility
Volatility describes how sharply and quickly a stock’s price swings — high-volatility stocks move a lot, low-volatility ones move gently.
Volatility measures the size and speed of a stock’s price fluctuations. A highly volatile stock can swing several percent in a day; a low-volatility one drifts more gently. It is a measure of price uncertainty, not of a company’s underlying business, and it says nothing on its own about whether a stock will go up or down.
Volatility is often measured statistically (the standard deviation of returns) or, relative to the market, by beta. Higher volatility means both larger potential gains and larger potential losses, and it can be uncomfortable to hold — which is why it is treated as a form of risk even when the long-term direction is up.
stocks-llm uses beta as its available market-sensitivity measure, shown with its as-of date. This definition is educational; volatility is not a buy or sell signal.
See more terms in the stocks-llm glossary.
Informational only — NOT financial advice. This is an educational definition, not a recommendation to buy or sell anything. Metrics on stocks-llm are delayed data and may be missing or stale. Always verify information independently and consult a qualified financial professional before making any investment decision.