The volatility index is an indicator used to measure the volatility of the market, and it is one of the important references for investors to make investment decisions. There are many types of volatility indicators, the most commonly used of which are historical volatility and implied volatility.
The historical volatility indicator is a volatility indicator calculated based on historical data, usually using the data of the highest price, lowest price and price of the past year. Historical volatility indicators can help investors understand how volatile they have been over the past year, so they can make a prediction about future movements.
The implied volatility indicator is a volatility indicator that is reversed through options, because options contain information such as the market's expectations and risk appetite for the future, so the implied volatility indicator can help investors understand the market's expectations and risk appetite for the future.
In addition to the above two commonly used volatility indicators, there are also other volatility indicators such as standard deviation and variance, which can help investors understand the volatility of ***.
It should be noted that the volatility indicator is only a reference basis for investors to make investment decisions, and investors also need to consider other factors comprehensively, such as the company's fundamentals, market trends, policy risks and other factors. At the same time, investors also need to be aware of the limitations of volatility indicators, such as the reliability and lag of data.