Research papers on volatility modeling

Research papers on volatility modeling study how the price fluctuations of assets, like stocks, change over time. Volatility refers to the amount and frequency of price changes; high volatility means prices can vary greatly, while low volatility indicates steadiness. These papers often use statistical methods and mathematical models to predict future volatility based on historical data. Understanding volatility helps investors manage risk and make informed decisions, as it provides insights into market behavior, potential returns, and the likelihood of sudden price changes, which are crucial for effective financial planning and risk assessment.