---
title: "Definition of HV"
url: https://signalscreener.fr/definition/volatility/
markdown_url: https://signalscreener.fr/definition/volatility.md
description: "Measures how much a stock's price fluctuates over time, based on standard deviation of returns."
type: glossary-definition
site: Signal Screener
language: en
keywords:
  - "HV"
  - "Historical Volatility"
translations:
  de: https://signalscreener.fr/de/definition/volatility.md
  es: https://signalscreener.fr/es/definition/volatility.md
  fr: https://signalscreener.fr/fr/definition/volatility.md
  it: https://signalscreener.fr/it/definition/volatility.md
  pt: https://signalscreener.fr/pt/definition/volatility.md
---

# Historical Volatility

## What is HV?

Measures how much a stock's price fluctuates over time, based on standard deviation of returns.

## Think of it like this

Like measuring how bumpy a road is - higher volatility means a wilder ride with bigger ups and downs.

## Formula

```
HV = StdDev of Daily Returns × √252 (annualized)
```

- **Daily Returns**: Percentage change from day to day
- **Standard Deviation**: Measure of return dispersion

## Why it matters

- Helps assess risk in a position
- Higher volatility = higher risk and potential reward
- Important for options pricing
- Compare to implied volatility for trading edges

## What's a good value?

| Range | Rating | What it means |
|---|---|---|
| < 20% | Low | Stable, defensive stock |
| 20-40% | Moderate | Typical for most stocks |
| 40-60% | High | More risk, growth stocks |
| > 60% | Very High | Speculative, small caps |

## Real-world example

A stock with 30% annualized volatility might move about 2% on a typical day.

---

This is educational content, not financial advice.

Source: [Definition of HV](https://signalscreener.fr/definition/volatility/) on Signal Screener. Free to quote and cite with attribution and a link to that URL, which is the canonical one.

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