How to Use Volatility Risk Metrics

IndiaTips.in presents post-market analytical data generated after market close and intended for next-day trade and investment preparation. All information is derived from structured market data and is provided for interpretation and learning purposes only.

This platform does not provide buy or sell recommendations. Users are expected to apply their own judgment, confirmation tools, and risk management.

How to use the data table is explained clearly below. Please refer to the section beneath the table for details.

How to Use Volatility Risk Metrics

This page explains how to read and interpret the Volatility Risk Metrics table. Volatility metrics help assess price fluctuation, risk level, and position sizing considerations for each stock. Each row represents one stock for one trading day.


Understanding Each Column

TICKER

The stock symbol used on the exchange. Each ticker represents one listed company.

Date

The trading date for which volatility metrics are calculated.

Close

The closing price of the stock for the trading session.

  • Acts as the reference price for volatility calculations
  • Used to assess risk in relation to price level

ATR (Average True Range)

Measures the average daily price movement over a defined period.

  • Higher ATR indicates larger daily price swings
  • Lower ATR indicates relatively stable price movement
  • Commonly used for stop-loss and position sizing

ATR_% (ATR as a Percentage of Price)

Shows ATR expressed as a percentage of the closing price.

  • Normalizes volatility across stocks of different prices
  • Higher percentage indicates higher relative risk
  • Useful for comparing volatility between stocks

Std_Dev_20 (20-Period Standard Deviation)

Measures the dispersion of price around its average over the last 20 periods.

  • Higher value indicates greater variability
  • Lower value indicates more consistent price behavior
  • Complements ATR by capturing statistical volatility

Volatility_Rank

Ranks the stock based on its volatility relative to other stocks in the same universe.

  • Higher rank indicates higher volatility
  • Lower rank indicates lower volatility
  • Useful for risk filtering and portfolio balancing

How to Use Volatility Metrics Together

Volatility metrics should be evaluated collectively to understand risk.

  • ATR shows absolute price movement
  • ATR % allows comparison across different price levels
  • Standard deviation highlights consistency versus variability
  • Volatility rank helps identify high-risk and low-risk stocks

Higher volatility does not mean bad, but it does require adjusted position sizing and wider risk limits.


Important Notes

  • Volatility measures risk, not direction
  • High volatility can increase both opportunity and loss
  • Low volatility may limit reward but offers stability
  • Always align volatility analysis with risk management rules

Disclaimer: This information is for educational and analytical purposes only and should not be considered trading or investment advice.


Data Update Frequency

Volatility risk metrics are calculated and updated after market hours for each trading day.


Summary

Volatility Risk Metrics help quantify how much a stock typically moves and how risky it may be to trade. They are essential for position sizing, stop placement, and maintaining disciplined risk control.

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