™Two holdings with the same ending return can travel through very different swings; volatility describes variability, not every kind of risk.
Risk & Portfolio
Volatility
The degree to which prices or returns fluctuate over time.
Plain-English context
Put the definition to work.
State return interval and historical versus implied method; volatility is not a comprehensive measure of permanent or liquidity risk.
Further reading and verification. Examples are hypothetical, not current quotes or recommendations. Product terms, tax treatment and market rules can change. Investor.gov — asset allocation and diversification