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I'll give it a try since I trade Options and volatility is the core of that
business.
First: volatility can be measured in several different ways; as average daily
percent change of a stock OR as the standard deviation of the closing
prices, OR ...
Second: volatility can be stated on an annual basis, which the 55 seems to
resemble
or on an average daily basis which the 1.46 seems to be.
Third: and the most important, all stock market measures of volatility require
a TIME-PERIOD over which to measure the volatility. Therefore it's easy to
have differences in any volatility measure if the underlying history periods
are also different.
Fourth: I believe there are natural differences between data vendors; try
looking
at the closing price of a stock traded on NYSE compared with its close on
another
exchange, for those stocks traded on multiple exchanges.
Some vendors will consolidate the exchange data, some may only report the NYSE.
To solve the problem you should contact each vendor's tech support and find out
their calculation method and basis of data.
Don't despair if different vendors have data differences.
Best to stick with one vendor and play the trends, departures from trends, etc.
Regards,
STAN RUBENSTEIN
At 11:24 AM 11/5/97 -0500, you wrote:
>Thursday I was checking fundamental data about some stocks.
>I found that dbc and PcQuotes volatility numbers were different for any
>company.
>for example XYZ volatility according to dbc is 55.7 and PcQuote 1.46
>can someone explain this pls
>
>thanks
>
>waheeb
>
>
>
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