Is Stock Price Volatility A Risk? : An Evaluation Review
Price volatility presents the investor possibilities and opportunities to buy securities at cheap prices and then sell it when they are overpriced, resulting in a profit at the end of the day. Recently, the volatility has become more valuable aspect for investors. Investment risk and return is impor...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
Mashhad: Behzad Hassannezhad Kashani
2019-01-01
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| Series: | International Journal of Management, Accounting and Economics |
| Subjects: | |
| Online Access: | https://www.ijmae.com/article_114104_02e3b18f9a59be57449d27bb748a2d7a.pdf |
| _version_ | 1827822551384981504 |
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| author | Rabia Qammar Rana Zain-Ul-Abidin |
| author_facet | Rabia Qammar Rana Zain-Ul-Abidin |
| author_sort | Rabia Qammar |
| collection | DOAJ |
| description | Price volatility presents the investor possibilities and opportunities to buy securities at cheap prices and then sell it when they are overpriced, resulting in a profit at the end of the day. Recently, the volatility has become more valuable aspect for investors. Investment risk and return is important for investors. Investors have risk averse nature, they concerned about the information flow of stock price volatility. This study aims to review the literature on stock price volatility significance and its measurements by different methods. This study provides the detail review of stock price volatility different types including historical, implied, intraday, and indices volatility. This study discusses various measurements of stock price volatility forecasting with the empirical findings. Efficient market hypothesis supports the changes in stock prices in prior literature. Some studies shows that volatility can be measured by standard deviation of investor’s stock return. The price volatility mostly determined by high, low and closing prices. It is found that forecasting volatility can be measured by different methods. The literature review suggests that GARCH and Parkinson formula is considered most reliable method to measure volatility. Parkinson is more reliable measurement because it has daily high and low stock prices. |
| first_indexed | 2024-03-12T01:59:18Z |
| format | Article |
| id | doaj.art-6de631da29084f158ccaaeffb6e704c8 |
| institution | Directory Open Access Journal |
| issn | 2383-2126 |
| language | English |
| last_indexed | 2024-03-12T01:59:18Z |
| publishDate | 2019-01-01 |
| publisher | Mashhad: Behzad Hassannezhad Kashani |
| record_format | Article |
| series | International Journal of Management, Accounting and Economics |
| spelling | doaj.art-6de631da29084f158ccaaeffb6e704c82023-09-07T21:47:25ZengMashhad: Behzad Hassannezhad KashaniInternational Journal of Management, Accounting and Economics2383-21262019-01-01618087114104Is Stock Price Volatility A Risk? : An Evaluation ReviewRabia Qammar0Rana Zain-Ul-Abidin1School of Economics, Finance and Banking, UUM, MalaysiaSchool of Business management, UUM, MalaysiaPrice volatility presents the investor possibilities and opportunities to buy securities at cheap prices and then sell it when they are overpriced, resulting in a profit at the end of the day. Recently, the volatility has become more valuable aspect for investors. Investment risk and return is important for investors. Investors have risk averse nature, they concerned about the information flow of stock price volatility. This study aims to review the literature on stock price volatility significance and its measurements by different methods. This study provides the detail review of stock price volatility different types including historical, implied, intraday, and indices volatility. This study discusses various measurements of stock price volatility forecasting with the empirical findings. Efficient market hypothesis supports the changes in stock prices in prior literature. Some studies shows that volatility can be measured by standard deviation of investor’s stock return. The price volatility mostly determined by high, low and closing prices. It is found that forecasting volatility can be measured by different methods. The literature review suggests that GARCH and Parkinson formula is considered most reliable method to measure volatility. Parkinson is more reliable measurement because it has daily high and low stock prices.https://www.ijmae.com/article_114104_02e3b18f9a59be57449d27bb748a2d7a.pdfvolatilitygarchparkinsonefficient market hypothesis |
| spellingShingle | Rabia Qammar Rana Zain-Ul-Abidin Is Stock Price Volatility A Risk? : An Evaluation Review International Journal of Management, Accounting and Economics volatility garch parkinson efficient market hypothesis |
| title | Is Stock Price Volatility A Risk? : An Evaluation Review |
| title_full | Is Stock Price Volatility A Risk? : An Evaluation Review |
| title_fullStr | Is Stock Price Volatility A Risk? : An Evaluation Review |
| title_full_unstemmed | Is Stock Price Volatility A Risk? : An Evaluation Review |
| title_short | Is Stock Price Volatility A Risk? : An Evaluation Review |
| title_sort | is stock price volatility a risk an evaluation review |
| topic | volatility garch parkinson efficient market hypothesis |
| url | https://www.ijmae.com/article_114104_02e3b18f9a59be57449d27bb748a2d7a.pdf |
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