Risk

Volatility

How much and how quickly a price moves up and down.

Why does it matter?

The more volatile a share, the bigger the swings you may see, in both directions.

How do I read it?

Volatility measures movement, not direction: a volatile share can rise or fall. It is one part of risk; Beta compares a share's swings with those of the whole market.

Example

Two shares both end the year 10% higher. One rose steadily; the other swung between −20% and +30% along the way. The second was much more volatile.