Why volatility?

Tags

While prices and economic indicators move in different directions at different times with correlations changing and decaying, the general level of movement is more easily observed and can lend itself to an “apples to apples” comparison across different domains in societal affairs.

Financial volatility, is observable, implied in optionprices or calculated from historical logarithmic returns.

After almost 200 years of advanced financial markets they might teach us something.

Prologue

Tags

,

Knowing the price of everything but the value of nothing might be the trait of the cynic if you read Lady Windermere’s Fan (Oscar Wilde 1892), but as prices are not the most important things in life they bring about the possibility to comprehend societal dynamics unfold on a global scale. The vision of Worldvolatility is to capture such dynamics using quantitative methods.