Volatility is calculated from daily percentage changes: the more they vary, the higher the volatility. It is annualised (multiplied by the square root of the number of trading days in a year) so assets can be compared.
As a rough guide, broad share indices run at 12–20%, individual large shares at 20–40%, Bitcoin at 40–80%, and smaller coins higher still.
Recent volatility (30 days) shows the current mood; one-year volatility shows the normal level for the asset.
Why it matters
Volatility is the most common measure of risk. Professional investors size positions by it: a holding twice as volatile gets roughly half the money, so each contributes similar risk. Volatility also clusters: calm periods and turbulent periods each tend to persist.
On FinVolio
Shown in the key statistics and Trend and risk table on every market and coin page.
General information, not advice.