Free Volatility Calculator
Assess the Risk and Price Fluctuations of Your Investments
The Volatility Calculator helps investors measure how much the price of an asset or portfolio fluctuates over time. By understanding volatility, you can gauge the potential risk and stability of your investments. High volatility indicates larger price swings, while low volatility suggests more stable performance. This tool allows both beginners and experienced investors to quantify risk, make informed investment decisions, and plan strategies that align with their risk tolerance. Regularly analyzing volatility supports better portfolio management and smarter financial planning.
Volatility Calculator
Calculate the historical volatility (standard deviation) of an asset.
Calculation Results
Periodic Volatility (Std. Dev.)
0.00%
Annualized Volatility
0.00%
Detailed Breakdown
Volatility Calculator Guide
The Formula We Use
Volatility equals Standard Deviation of returns for the chosen periodStandard Deviation equals square root of VarianceVariance equals average of squared deviations from the mean returnAnnualized Volatility equals square root of N times period Volatilitywhere N is periods per year such as two hundred fifty two for daily or twelve for monthly
Example Calculation
- Period Volatility equals 1 point 20 percent per day
- Annualized Volatility equals square root of 252 times 1 point 20 percent ≈ 19 point 05 percent
- This means the typical year to year change is about nineteen percent around the mean return under normal conditions
How to Use This Calculator
- Enter a series of periodic returns for the chosen horizon such as daily weekly or monthly.
- The tool computes the mean return then the squared deviations and the variance.
- It takes the square root to get period Volatility.
- For annualized Volatility multiply period Volatility by the square root of the number of periods per year.
Tips for Better Interpretation
- Match frequencies: use the same period across your data set.
- Use enough data: larger samples give more stable estimates.
- Mind non normal tails: large jumps can make simple estimates less reliable.
- Compare like for like: evaluate funds or assets with a similar style.
- Pair with drawdown and VaR: combine Volatility with tail risk measures for a fuller picture.
This is educational content and not financial advice.
Benefits of Using Our Volatility Calculator
Measure Investment Fluctuations
Track the degree of variation in your portfolio or stock returns to gauge market risk.
Improve Risk Management
Identify highly volatile investments and optimize portfolio allocation to reduce risk exposure.
Supports Multiple Assets
Analyze volatility for individual assets or combined portfolios to make informed investment decisions.
Beginner-Friendly Interface
Provides clear and understandable volatility metrics for both novice and experienced investors.
Mobile Responsive
Accessible and fully functional across smartphones, tablets, and desktop devices.
Secure & Private
All calculations occur locally on your device; your data is never stored or shared online.
Frequently Asked Questions
What is a Volatility Calculator?
This tool measures the degree of variation or fluctuation in the price of a stock or portfolio over time.
Why is volatility important?
Volatility indicates market risk and helps investors assess potential gains and losses.
Can I calculate volatility for multiple assets?
Yes, you can input individual stocks or a portfolio to analyze overall volatility.
Is it suitable for beginners?
Absolutely. The calculator provides easy-to-understand metrics for all levels of investors.
What inputs are required?
Historical prices or returns for the asset or portfolio are needed to calculate volatility.
Is my data safe?
Yes. All computations are processed locally; your data is never transmitted or stored online.