Volatility
التذبذب
Volatility measures how much and how quickly a security’s price moves over time, commonly calculated as the standard deviation of returns. Higher volatility means larger and more frequent price swings in both directions. Exchanges such as the EGX apply daily price limits partly to contain extreme intraday volatility.
Example
Two shares can both end a year up ten per cent while one moved within a narrow band all year and the other fell thirty per cent mid-year before recovering. The second is far more volatile despite the identical result.
Why it matters
Volatility describes the path, not the destination, and the path is what determines whether you are still holding at the end. It is also the input behind risk labels on fund fact sheets.
A common mistake
Equating volatility with risk of loss. A volatile holding may recover fully; a stable one may erode quietly through inflation. They are different risks and one does not substitute for the other.
Live example from the Egyptian market
The EGX 30 index stands at 56,280.2 today (-0.39%), +37.61% year to date. Details →
Data as of ; refreshes with every session or disclosure.
See it in action