Asymmetric Volatility

Business, Legal & Accounting Glossary

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.


Cite Term


To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.

Page URL
https://payrollheaven.com/define/asymmetric-volatility/
Modern Language Association (MLA):
Asymmetric Volatility. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
December 04, 2021 https://payrollheaven.com/define/asymmetric-volatility/.
Chicago Manual of Style (CMS):
Asymmetric Volatility. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
https://payrollheaven.com/define/asymmetric-volatility/ (accessed: December 04, 2021).
American Psychological Association (APA):
Asymmetric Volatility. PayrollHeaven.com. Retrieved December 04, 2021
, from PayrollHeaven.com website: https://payrollheaven.com/define/asymmetric-volatility/

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.