Real Estate Newsletter Articles this Week: Existing-Home Sales Increased to
4.15 million SAAR in November
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At the Calculated Risk Real Estate Newsletter this week:
[image: Existing Home Sales]*Click on graph for larger image.*
• NAR: Existing-Home Sales Increase...
17 hours ago
2 comments:
If the price was constantly increasing 5% a week wouldn't the volatility be zero because it constant?
The volatility in price wouldn't be zero, but the volatility in the change in price would be zero, so I guess it depends on the volatility you wish to measure.
You do have a very good point though. I've thought about doing alternate charts comparing today's price to the average of yesterday's price and tomorrow's price (using hindsight of course going back through the data). In other words, how well could we predict today's price if we knew yesterday's price and tomorrow's price? That might be useful to show any chaos in the system.
In fact, you are describing why I said this.
I expected that there might be more volatility recently as oil moved substantially higher.
I thought since the price was rising higher I should at least be picking up more volatility, at least the way I'm measuring it, simply because it was known that the price was changing fairly rapidly.
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