Volatility measures how much and how quickly prices move. It's both a risk measure and an opportunity indicator.

How It's Measured

  • Standard deviation of returns (most common)
  • VIX (Volatility Index) for US markets
  • Nikkei VI for Japan

Asian Markets Volatility Comparison

Emerging Asian markets tend to be more volatile than developed ones:

  • Low volatility: Japan, Singapore, Hong Kong
  • Medium: South Korea, Taiwan
  • Higher: India, Indonesia, Vietnam, Philippines

Why Volatility Matters

  • For traders: more volatility = more profit potential (and risk)
  • For investors: high volatility can offer buying opportunities during dips
  • For risk management: portfolio allocation should consider volatility levels