Historical volatility: Historical volatility is to evaluate the volatility risk of assets by calculating the standard deviation of asset prices in the past period of time. This method is based on past data to predict, regardless of possible future events, so there may be some deviations.
Implied volatility: Implied volatility is the market's expectation of future asset price fluctuations, which is usually inferred from the option price. This method can reflect the views of market participants on the future trend, but it may also be affected by market sentiment and other factors.
Technical analysis: understand the price trend and fluctuation of financial commodities through the analysis of price charts and various technical indicators. For example, moving averages, bollinger bands and relative strength indicators can help to judge the price trend and fluctuation range.
Fundamental analysis: the price fluctuation of financial commodities is often related to the fundamental factors behind it. For example, the fluctuation of commodity prices is related to factors such as supply and demand, global economic growth, and the fluctuation of stock prices is related to factors such as company performance and macroeconomic environment. Through the analysis of these fundamental factors, we can predict the trend and magnitude of price fluctuations.
Trading strategy: according to different market conditions and investors' needs, different trading strategies can be formulated, such as timing strategy, arbitrage strategy and programmed trading.
It should be noted that quantifying the volatility of financial markets requires the use of complex mathematical models and algorithms, and requires in-depth understanding and experience of market changes. So it may be difficult for ordinary investors to bear such risks and costs.