Does high volume mean higher volatility?
Measuring Volatility with Beta
Analysis of beta shows that higher daily volume can often mean higher volatility, but this is not always the case. In fact, a higher trading volume may also suggest greater liquidity, which can moderate large price swings and reduce volatility.
Measuring Volatility with Beta
Analysis of beta shows that higher daily volume can often mean higher volatility, but this is not always the case. In fact, a higher trading volume may also suggest greater liquidity, which can moderate large price swings and reduce volatility.