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The phrase 'increase volatility' is correct and usable in written English.
You can use it to describe a situation in which there are more frequent and intense changes. For example: "The introduction of new technologies is likely to increase volatility in the stock market."
Exact(32)
However, large enough upside moves also, of course, increase volatility.
Why Does Bad News Increase Volatility and Decrease Leverage?
It has said it wants to reduce its dollar commitments because they increase volatility in the rand.
"One of the danger of position limits is that if you reduce volumes, you can actually increase volatility".
Other tactics include piggybacking on sharp price movements to increase volatility, which increases the value of options held by traders.
"I think if many companies scale back, it is a fair argument that might increase volatility," said Patrick Wood III, the chairman of FERC.
Similar(28)
Technological change may also have increased volatility.
There is increased volatility, and things happen so much quicker".
"Instead, it's increasing volatility and been counterproductive.
Others worry that HFT increases volatility and systemic risk.
With the increased volatility in the market, they are getting into difficulty".
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Since I tried Ludwig back in 2017, I have been constantly using it in both editing and translation. Ever since, I suggest it to my translators at ProSciEditing.

Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com