Last Updated on 10 February, 2024 by Trading System
1. January 2nd: The first trading day of the year is usually very volatile due to investors adjusting their portfolios and speculating on the direction of the market.
2. January 3rd: This day is often the second most volatile day of the year due to investors continuing to adjust their portfolios and speculative trading activity.
3. August 9th: This day marks the end of the second quarter and is often a very volatile day as investors adjust their portfolios to reflect their outlooks for the third quarter.
4. October 1st: This day marks the beginning of the fourth quarter and is often a very volatile day as investors adjust their portfolios to reflect their outlooks for the fourth quarter.
5. October 15th: This day marks the mid-point of the fourth quarter and is often a very volatile day as investors adjust their portfolios to reflect their outlooks for the fourth quarter.
6. November 30th: This day marks the end of the fourth quarter and is often a very volatile day as investors adjust their portfolios to reflect their outlooks for the next year.
7. December 4th: This day marks the beginning of the holiday season and is often a very volatile day as investors adjust their portfolios to reflect their outlooks for the following year.
8. December 24th: This day marks the Christmas holiday and is often a very volatile day as investors adjust their portfolios to reflect their outlooks for the following year.
9. December 31st: This day marks the end of the year and is often a very volatile day as investors adjust their portfolios to reflect their outlooks for the next year.
10. January 15th: This day marks the mid-point of the first quarter and is often a very volatile day as investors adjust their portfolios to reflect their outlooks for the first quarter.
What is volatility in the stock market?
Volatility in the stock market refers to the degree of uncertainty or risk associated with the size of changes in a stock price. Volatility is a measure of the amount of fluctuations that a stock experiences over a given period of time. A stock with higher volatility will experience larger fluctuations than a stock with lower volatility.
Volatility can be calculated by measuring the standard deviation of the daily price changes of a particular stock over a specified period of time. Generally, the higher the standard deviation, the higher the volatility and the greater the risk associated with the stock.
Volatility can also be measured by looking at the beta of a stock. Beta measures the correlation between a stock’s returns and the returns of the overall market. A stock with a beta of 1 will move with the overall market, while a stock with a beta of more than 1 will move more than the market. Conversely, a stock with a beta of less than 1 will move less than the market.
Volatility is an important factor to consider when investing in stocks. A stock with higher volatility is more risky, and investors should only invest in stocks with higher volatility if they have a higher risk tolerance. On the other hand, stocks with lower volatility may present investors with a more attractive investment opportunity. Ultimately, investors should determine the volatility of a stock before investing in it to ensure that their risk tolerance and investment goals are met.