The Most Volatile Stocks
Most Volatile Stocks: Volatility is an investor’s best friend. Periodic volatility in the stock market is healthy and good for the market. It provides an opportunity for investors to accumulate high-quality shares at a low price for the long term. It gives investors an opportunity to take advantage of price swings to buy when prices fall below the value of the company and sell when they rise well above the company’s intrinsic value.
In reality, however, traders use volatility to make quick gains on swing trades without necessarily having a long term view of accumulating the stock.
Most Volatile Stocks Today
The volatility of a stock is the fluctuation of price in any given timeframe. The most volatile stocks may demonstrate price fluctuations of up to several hundred percents during the day. In the developed markets volatility tends to be much lower and doesn’t exceed 20-30% during the quiet periods. Price fluctuations aren’t always obvious when looking at stocks that are priced below $1. You can see price changes in percentages to spot such fluctuations.
|Company Name||High||Low||Last Price||% Chg||Value
|Dr. Reddys Labs
|Power Grid Corp
Most Volatile Penny Stocks
This article discusses the available tools, applications, websites and ways to identify the most volatile stocks currently trading. Also discussed are the different volatility criteria, and points a trader should consider before selecting criteria or tools.
Set and define your volatility criteria:
Volatility is a wide-ranging term, as there are different criteria, mathematical models, calculations and concepts applied to measure and assess volatility. Different traders may have their own criteria for volatile stocks. A few examples:
- For some, volatile stocks may simply be the ones having the largest difference between HIGH and LOW price of the day,
- For others, they may be the most active stocks with the highest volume,
- For the rest, they may be those screened based on mathematical models and complex calculations taking historical data into account and so on
A trader needs to identify and finalize his own “volatility” and then look for tools, applications and data content matching that criterion.
Additionally, volatility-based trades can be categorized into two streams:
- Currently Volatile – stock which is currently showing high swings
- Expected to be Volatile – stock which is currently stable, but expected to break out in the near future with high volatility
We’ll focus on the first stream, as the second one relies more on future expectations rather than current actions, and may remain dependent on expected earnings reports, the outcome of a large project that the company may have bid for, etc.
Sources to identify tools and applications to find the most volatile stocks:
Most trading based on volatile stocks is aimed for instant action. Simple volatility criteria may include:
- Most Active by Share Volume
- Most Advanced
- Most Declined
- Most Active by Dollar Volume, etc.
- Additionally, parameters in the corresponding derivatives market (Open Interest, Volume, Put Call Ratio, Implied Volatility, etc.) can also be used to assess the volatility in the underlying stock
Which stocks are the most volatile?
- Volatile Stock #1: Nvidia (NVDA)
- Volatile Stock #2: Devon Energy (DVN)
- Volatile Stock #3: Freeport-McMoran (FCX)
- Bottom Line on the Most Volatile Stocks Today.
What is the most fluctuating stock?
The volatility of a stock is the fluctuation of price in any given timeframe. The most volatile stocks may demonstrate price fluctuations of up to several hundred percents during the day.
Which is the most volatile stock in India?
- ICICI Bank.
- Maruti Suzuki.
- IndusInd Bank.
- TATA Steel.
- Axis Bank.
- Bharti Airtel.
Most Volatile Stocks 2018
The return to volatility was an important theme for stock investors during 2018, as complacency and short memories set the stage for panic, especially during the fourth quarter. But as we saw on Jan. 28, daily volatility can still change investors’ perceptions of a dime. To break away from the daily noise, investors may find it useful to identify which stocks have shown the greatest price volatility and which have been least volatile.
As an example, semiconductors are normally a volatile group of stocks. They have greatly outperformed the broad market over the past five years, but the daily grind, especially during periods of higher overall volatility for the market, is not for everyone.
We published an article headlined “Semiconductor stocks are hot — here are the winners, losers and analyst favorites.” The headline was correct through Jan. 25, because the PHLX Semiconductor Index ETF SOXX, -0.20% was up 11% year-to-date, following a 15% beating during the fourth quarter. Then shares of Nvidia NVDA, -1.26% sank 14% on Jan. 28 after the company reduced its fourth-quarter revenue outlook to $2.2 billion from $2.7 billion. That changed the mood for the semiconductor subsector — at least for the day.
A low-volatility advantage
It turns out that for buy-and-hold index-fund investors, a strategy of investing only in the least volatile 100 stocks among the S&P 500 Index SPX, -0.07%, S&P 400 Mid Cap Index MID, +0.04% and S&P 600 Small-Cap Index SML, +0.16% has outperformed the broad indexes over various periods.
For stock pickers, holding the most volatile names can be very difficult if they are day traders or short-term investors. Returns for stocks showing the greatest recent volatility have been mixed, but there is a clear tendency for the least volatile to outperform over long periods.