Volatility Modeling (part 1): Journey from ARCH to NN and MCMC

Part 1 / 2

What is volatility?

Volatility is important in the world of finance. It's like a weathervane that shows investors how stormy or calm the market is. In simple terms, it's about how much the price of something like a stock or a currency goes up and down. If prices jump around a lot, we say there's high volatility. This is important because it helps people …