IDEAS home Printed from https://ideas.repec.org/a/air/journl/v6y2019i1p80.html

Is Stock Price Volatility A Risk? : An Evaluation Review

Author

Listed:
  • Rabia Qammar
  • Rana Zain-Ul-Abidin

Abstract

Price volatility presents the investor possibilities and opportunities to buy securities at cheap prices and then sell it when they are overpriced, resulting in a profit at the end of the day. Recently, the volatility has become more valuable aspect for investors. Investment risk and return is important for investors. Investors have risk averse nature, they concerned about the information flow of stock price volatility. This study aims to review the literature on stock price volatility significance and its measurements by different methods. This study provides the detail review of stock price volatility different types including historical, implied, intraday, and indices volatility. This study discusses various measurements of stock price volatility forecasting with the empirical findings. Efficient market hypothesis supports the changes in stock prices in prior literature. Some studies shows that volatility can be measured by standard deviation of investor’s stock return. The price volatility mostly determined by high, low and closing prices. It is found that forecasting volatility can be measured by different methods. The literature review suggests that GARCH and Parkinson formula is considered most reliable method to measure volatility. Parkinson is more reliable measurement because it has daily high and low stock prices.

Suggested Citation

Handle: RePEc:air:journl:v:6:y:2019:i:1:p:80
DOI: 10.5281/zenodo.17240713
as

Download full text from publisher

File URL: https://www.ijmae.com/article_114104_98b44a9409101d10afcf85d7d7f37989.pdf
Download Restriction: no

File URL: https://libkey.io/10.5281/zenodo.17240713?utm_source=ideas
LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
---><---

More about this item

Keywords

;
;
;
;

Statistics

Access and download statistics

Corrections

All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:air:journl:v:6:y:2019:i:1:p:80. See general information about how to correct material in RePEc.

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

We have no bibliographic references for this item. You can help adding them by using this form .

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Dr. Behzad Hassannezhad Kashani (email available below). General contact details of provider: https://www.ijmae.com/ .

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.