volatility
/ˌvɒləˈtɪləti/The degree of variation in the trading price of a financial instrument over time.
Stock market volatility increased during the economic crisis.
Prices swung wildly as investors reacted to uncertainty.
Often measured using statistical metrics like standard deviation.
The tendency of a system or process to experience sudden, unpredictable changes.
Political volatility can disrupt long-term planning.
Frequent policy changes create uncertainty for businesses.
Used in contexts beyond finance, such as politics or technology.
Collocations
Related Phrases
💡Pro Tip
Financial Context
Volatility is often measured by the VIX index in stock markets.
⚡Gold Rule
Precision
Use 'volatility' for rapid, unpredictable changes, not gradual trends.
📖Word Origin
From Latin 'volatilis' (flying, fleeting) + '-ity' (state of being).
📝Usage Notes
In finance, volatility is often quantified using statistical models. In general usage, it describes unpredictability.