A statistical measure of how much an underlying asset's price has actually fluctuated over a past period.
Historical volatility (HV), also called realized volatility, measures the actual price fluctuations of an underlying asset over a defined past period, typically expressed as an annualized standard deviation of returns. Unlike implied volatility, which is forward-looking and derived from option prices, HV is backward-looking and calculated directly from price data. Comparing HV to IV helps traders judge whether current option premiums are pricing in more or less movement than the underlying has recently shown.
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