Bookmarks
Concepts
Activity
Courses
Learning Plans
Courses
Request
Log In
Sign up
New Course
Concept
Volatility Clustering
Volatility clustering
refers to the phenomenon where
large changes
in
asset prices
are often followed by
large changes
, and
small changes
tend to be followed by
small changes
, indicating that volatility tends to cluster over time. This characteristic is a key feature of
financial time series
and suggests that volatility is not constant but varies over time, often in a predictable manner.
Relevant Degrees
Probability and Statistics 70%
Mathematical Economics 30%
Generate Assignment Link
Lessons
Concepts
Suggested Topics
Foundational Courses
Learning Plan
Log in to see lessons
Log In
Sign up
3