Market Volatility Assessment

Market volatility assessment refers to the analysis of how much the price of assets, like stocks or commodities, fluctuates over a specific period. High volatility indicates that prices can change dramatically in a short time, suggesting increased risk. Conversely, low volatility shows more stable prices. Investors and analysts use various tools and metrics, like standard deviation and the VIX index, to measure and understand these fluctuations. By assessing market volatility, individuals can make informed decisions about when to buy or sell investments, balancing potential gains against the risks involved.