Volatility refers to the amount of uncertainty or risk about the size of changes in a security’s value. A higher volatility means that a security’s value can potentially be spread out over a larger range of values. This means that the price of the security can change dramatically over a short time period in either direction. A lower volatility means that a security’s value does not fluctuate dramatically, but changes in value at a steady pace over a period of time.
One measure of the relative volatility of a particular stock to the market is its beta. A beta approximates the overall volatility of a security’s returns against the returns of a relevant benchmark (usually the S&P 500 is used).
Volatility is measured by the Chicago Board of Options Exchange (CBOE), primarily through the CBOE Volatility Index (VIX) and, to a lesser extent, the CBOE Nasdaq Volatility Index (VXN) for technology stocks. The VIX tracks the speed of stocks’ price movements in the S&P 100; the VXN tracks it in Nasdaq 100 stocks. Both indices take a weighted average of the estimated volatility of eight stocks on a particular index. Both are calculated every 60 seconds over the CBOE’s trading day, which means it records a great deal of fluctuation.
On Thursday (Oct-01), CBOE Volatility Index (VIX) fell -7.96% or -1.95 points to close at $22.55. The index was opened at $23.14 and floating between $22.55 – $25.23 in the whole trading session. Over the last 52-Weeks period, the index hit the highest point of $53.29 and $10.88 lowest point in the same period.
With the yesterday’s trade close C&J Energy Services, Ltd. (NYSE:CJES) has weekly volatility of 13.83% and its monthly volatility of 11.16%. CJES opened the day at $3.62 and closed at $3.55 with the gain of +0.85%. The stock currently has Beta of 1.77 where; Beta indicates the volatility of the security. CJES currently has Average True Range (ATR) of 0.53 along with the Relative Strength Index (RSI) of 33.16. The company after the yesterday closing has a market capitalization of 423.79 million.
Energy XXI Ltd (NASDAQ:EXXI) after settling the last trading session has volatility 11.74% for the month and 13.34% for the week. The company’s security currently has RSI (Relative Strength Index) of 38.13 and ATR (Average True Range) of 0.16. The stock closed the last trading session with market capitalization of 89.89 million and its shares got a jump of +3.81% closing at $1.09.
After the last market close Kindred Healthcare, Inc. (NYSE:KND) has beta of 2.20 (Beta is the single most important measure of stock risk or volatility) while the monthly and weekly volatility of the stock stands at 3.65% and 8.00% respectively. The stock has current Average True Range (ATR) of 0.76 and Relative Strength Index (RSI) of 10.87. In the last trading session KND closed at $13.92 with an decrease of -11.62%. The company has current market capitalization of 1.33 billion.