Asymmetric Volatility

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Definition: Asymmetric Volatility

Asymmetric Volatility

Full Definition of Asymmetric Volatility

A situation where the volatility of a security is higher when the broader market is performing badly than when the market is performing well. Experts tend to disagree about what causes asymmetric volatility, however factors such as leverage and panic about the market are often cites. The fact that asymmetric volatility even exists is important to hedging strategies as well as to option pricing models.

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Modern Language Association (MLA):
Asymmetric Volatility. Payroll & Accounting Heaven Ltd.
December 04, 2021
Chicago Manual of Style (CMS):
Asymmetric Volatility. Payroll & Accounting Heaven Ltd. (accessed: December 04, 2021).
American Psychological Association (APA):
Asymmetric Volatility. Retrieved December 04, 2021
, from website:

Definition Sources

Definitions for Asymmetric Volatility are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 20th November, 2021 | 0 Views.