volatility

USAGE SUMMARY

The word "volatility" is correct and usable in written English.
It is often used to describe a situation that is unpredictable and constantly changing. For example, "The market has been plagued with volatility this past month."

✓ Grammatically correct

News & Media

Formal & Business

Science

Human-verified examples from authoritative sources

Exact Expressions

60 human-written examples

The past five years have been much more volatile than the previous two decades, and volatility has become more global.

The Economist

Nonetheless, some temporary rise in volatility is probable.Monetary union might even make currencies more volatile permanently.

The Economist

Any news from the diplomatic rooms particularly creates volatility in Iran's currency market.

The Guardian

Over longer periods, stocks and shares tend to deliver a superior return to cash, despite periodic bouts of volatility, so if you have a long-term goal in mind, it may be worth taking the gamble.

The Guardian - Money

Budget carrier Wizz Air has revived plans to float on the stock market after abandoning the idea last summer because of volatility in the airline industry.

The Guardian - Business

Irlen Syndrome is hereditary and Considine wonders if that might explain his father's volatility.

The Guardian - Film

But on Monday it said it had decided "not to proceed with an IPO at this stage, due to the current market volatility in the airline sector".

The Guardian - Business

Buying protection against sterling volatility was at its most expensive since the 2008 financial crisis, and the pound lost around half a cent against the euro, to €1.338.

The Guardian

"We have been watching closely the recent volatility in global financial markets.

The Guardian - Business

"The Rajar figures once again prove the London market's volatility and capacity to bounce around as the shine rubbed off previous big winner Magic, who fell away slightly.

The Guardian

The bond market area is now under pressure because of reduced volatility in the markets and demands from regulators for banks to hold more capital against these businesses, reducing the profitability.

The Guardian - Business

Expert writing Tips

Best practice

When discussing financial markets, use "volatility" to specifically refer to the degree of price fluctuation over time, rather than simply saying "instability".

Common error

Avoid using "volatility" to describe situations that are generally stable or predictable. "Volatility" implies significant and rapid changes; using it incorrectly can misrepresent the actual conditions.

Linguistic Context

The noun "volatility" primarily functions as a descriptor of the degree of variation of a trading price series over time, often used in finance and economics. According to Ludwig AI, the word is usable in written English.

Expression frequency: Very common

Frequent in

News & Media

38%

Formal & Business

31%

Science

31%

Less common in

Ludwig's WRAP-UP

The term "volatility" is a commonly used noun, primarily functioning to describe the degree of fluctuation or instability in a given context. Ludwig AI confirms its correctness and usability in written English. It finds frequent application in financial markets, economic discussions, and news reports. Related terms such as "instability" and "fluctuation" offer alternative ways to express similar concepts, each with subtle differences in emphasis. When writing, it's best to use "volatility" when referring to the degree of price fluctuation over time, particularly in the context of financial markets, while avoiding its misuse in describing situations that are stable or predictable.

More alternative expressions

Phrases that express similar concepts, ordered by semantic similarity:

Instability

Focuses on the lack of stability rather than the degree of fluctuation.

Fluctuation

Emphasizes the changes or variations, especially in price or level.

Unpredictability

Highlights the inability to foresee future outcomes.

Variability

Stresses the capacity to vary or change.

Changeability

Implies a tendency to change frequently.

Erratic behavior

Describes irregular and unpredictable actions or movements.

Turbulence

Suggests a state of disturbance or disorder.

Irregularity

Focuses on the deviation from what is standard or expected.

Inconstancy

Emphasizes the lack of steadiness or reliability.

Capriciousness

Highlights the tendency to sudden and unaccountable changes of mood or behavior.

FAQs

How is "volatility" typically measured in financial markets?

In financial markets, "volatility" is commonly measured using the VIX index or implied volatility of options. These metrics provide an indication of the expected degree of price fluctuation in the near term.

What are some common causes of "volatility" in the stock market?

Several factors can cause stock market "volatility", including economic news, political events, changes in interest rates, and investor sentiment. These factors can lead to increased buying or selling pressure, resulting in significant price swings.

How does "volatility" affect investment decisions?

"Volatility" can influence investment decisions by increasing the perceived risk of certain assets. Investors may choose to reduce their exposure to volatile assets in favor of more stable investments during periods of high "volatility".

What are some strategies for managing "volatility" in an investment portfolio?

Strategies for managing "volatility" include diversification, using stop-loss orders, and investing in less volatile assets such as bonds or dividend-paying stocks. It is also helpful to take a long-term perspective and avoid making impulsive decisions based on short-term market fluctuations.