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Can the model compute volatility for periods shorter than one year?

April 26, 2017compute model periods shorter volatility year

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Can the model compute volatility for periods shorter than one year?

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The Volatility Tool uses the data provided in the input file to determine the actual trading prices (closing adjusted price) to determine volatility. So, any amount of daily trading price action will create a sample to compute volatility. The volatility computation simply derives the percentage change based on the formula. You can use the Tool to compute monthly, bi-annual, short trading year or any other period’s volatility. Of course, more data points will produce a more significant outcome.