Annualizing volatility

Volatility is one of the best known and most widely used concepts in finance. Given a price series of a financial instrument, its volatility is defined as the dispersion of the returns. This measure is used to compare securities in terms of risk. But in order to compare, sometimes it is necessary to scale. In this post we explain the mathematical foundation of the annualized volatility.

Read more

Clara Díaz-Pinés