Volatility Ratio

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Dictionary Says

Definition of 'Volatility Ratio'

A technical indicator used to identify price ranges and breakouts. The volatility ratio uses a true price range to determine a stock's true trading range and is able to identify situations where the price has moved out of this true range.
Investopedia Says

Investopedia explains 'Volatility Ratio'

The volatility ratio is typically signified with a primary line on a chart, apart from price bars. Although there is no hard-and-fast number used to determine when a breakout is probable, a volatility of 0.5 is most often used by technical traders.
Search results for

'Volatility Ratio'

  • Ratio Writing: A High-Volatility Options Strategy

    http://www.investopedia.com/articles/optioninvestor/02/111202.asp
    ... Since we are selling high implied volatility with ratio writes (and are therefore
    short vega and long theta), we can have a profit even if the underlying ...

  • Do Adaptive Moving Averages Lead To Better Results?

    http://www.investopedia.com/articles/trading/08/adaptive-moving-averages.asp
    ... In practice, the volatility ratio can be an indicator such as the Bollinger bandwidth,
    which measures the distance between the well-known Bollinger bands. ...

  • How The Sharpe Ratio Can Oversimplify Risk

    http://www.investopedia.com/articles/07/SharpeRatio.asp
    ... It is similar to the Sharpe ratio, but its denominator focuses solely on the downside
    volatility, which is the volatility that concerns most investors. ...

  • High Income, Low Volatility Emerging Markets

    http://stocks.investopedia.com/stock-analysis/2011/High-Income-Low-Volatility-Emerging-Markets-HILO-VIV-PHI-EBR-EEM1130.aspx
    ... holding in the ETF, this is due to their propensity of high dividends and low
    volatility. ... The dividend yield is about 12% and it trades with a P/E ratio of 10. ...

  • Volatility's Impact On Market Returns

    http://www.investopedia.com/articles/financial-theory/08/volatility.asp
    ... Changes in inflation trends influence the long-term stock market trends and volatility.
    Expanding price-earning ratios (P/E ratio) tend to correspond to ...

  • Option Volatility: Why Is It Important? | Investopedia

    http://www.investopedia.com/university/optionvolatility/volatility1.asp
    ... puts, backspreads and long strangles/straddles) do best when implied volatility
    levels rise. Negative Vega strategies (like short options, ratio spreads and ...

  • Measure Your Portfolio's Performance

    http://www.investopedia.com/articles/08/performance-measure.asp
    ... more on this measure, read Beta: Know The Risk.) The Treynor measure, also known
    as the reward to volatility ratio, can be easily defined as: (Portfolio Return ...

  • Using Historical Volatility To Gauge Future Risk

    http://www.investopedia.com/articles/06/historicalvolatility.asp
    ... exhibited a monthly volatility of 5%," but the term is also used in conjunction
    with return measures, as, for example, in the denominator of the Sharpe ratio. ...

  • Understanding The Sharpe Ratio

    http://www.investopedia.com/articles/07/sharpe_ratio.asp
    ... The idea of the ratio is to see how much additional return you are receiving for
    the additional volatility of holding the risky asset over a risk-free asset ...

  • The Basics Of The Long Ratio Backspread

    http://www.investopedia.com/articles/optioninvestor/09/long-ratio-backspread.asp
    ... A long ratio backspread can offer you a number of advantages versus ... in Futures
    Trading"(2000), "The Option Trader's Guide to Probability, Volatility and Timing ...

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