
High Volatility Stocks
High volatility stocks are shares that experience significant fluctuations in their price over a short period of time, often more than other stocks in the market. The volatility could stem from various factors, such as the company’s fundamentals, industry-specific events, or broader market conditions. Investors often seek high volatility stocks for potential higher returns, but they also come with increased risk. Some common indicators used to identify high volatility stocks include: - Average True Range (ATR): Measures market volatility by calculating the average range between the high and low prices over a set period. - Bollinger Bands: A volatility indicator that shows the relative high or low of a stock’s price compared to its moving average, with the bands widening during high volatility and contracting during low volatility. These tools help traders and investors assess the potential price movement of a stock.
Related Terms
Income Statement
An income statement is a key financial document detailing a company’s profit, loss, revenue, expenses,...
Internal Rate Of Return
The Internal Rate of Return (IRR) measures the compound annual return of a financial asset,...
Firm Allotment
Firm allotment refers to the allocation of shares in an IPO to non-retail investors, guided...
Delivery Trading
Delivery trading involves buying/selling a security and settling it by taking/giving delivery. Unlike intraday trading,...
Dividend Per Share
Dividend per share (DPS) measures the dividend amount distributed per share, calculated as DPS =...
High Beta Stocks
High Beta stocks are shares that exceed market returns but come with elevated risk. They...