11-03-2014, 03:52 PM
(11-03-2014, 03:36 PM)alexg Wrote: Should be fixed now. I would love to do this in Excel but find it pretty easy to insert transactions in M*. I don't believe in Beta or standard deviation ....
I find that high volatility is Mr Market's way of offering screaming bargains. Not often, but frequently enough for me. One excellent measure of volatility is the VIX, but it applies to the broad market. I like to use it to know when to buy when others are fearful, but by itself it does not say anything about individual stocks.
Beta and standard deviation are volatility measures that supposedly capture risk for individual stocks. I don't use beta because it does not capture true volatility but M* provides it so what the heck, maybe I'm wrong.
Standard deviation is a much better measure of volatility for individual stocks than beta. I am following it for individual stocks and for my portfolio as a whole to see if I can gain any insights, perhaps in relation to extremes in the VIX. Who knows?