volatility
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volatility
A term from the financial world that describes the extent of fluctuations in prices or rates (e.g., of stocks or currencies) over a certain period of time. High volatility means strong and rapid price changes.
Die Volatilität am Aktienmarkt hat in den letzten Wochen stark zugenommen.
Volatility in the stock market has increased sharply in recent weeks.
The ending '-ität' signals an abstract noun. It is attached to adjectives (here: 'volatil' (volatile)) and is typical of technical terms and loanwords, often of Latin origin.
Die Flexibilität des Materials ist beeindruckend.
The flexibility of the material is impressive.
'Volatilität' (volatility) is a technical term and is used almost exclusively in finance or in the natural sciences (chemistry, physics). In normal everyday life, the word is very rare.
Der Professor erklärte die Volatilität verschiedener chemischer Elemente.
The professor explained the volatility of various chemical elements.
The context makes the meaning clear. Words like 'Aktien' (stocks), 'Markt' (market), 'Kurse' (rates/prices), or 'Preise' (prices) point to the financial meaning. Terms like 'Stoff' (substance), 'Flüssigkeit' (liquid), 'Dampf' (vapor), or 'verdunsten' (to evaporate) point to the chemical meaning.
Anleger müssen die hohe Volatilität der Kryptowährungen berücksichtigen.
Investors must take the high volatility of cryptocurrencies into account.
In both meanings, 'Volatilität' (volatility) is very often combined with adjectives that describe the extent. The most common are 'hohe Volatilität' (high volatility) and 'niedrige' or 'geringe Volatilität' (low volatility).
In Krisenzeiten ist eine hohe Volatilität an der Börse normal.
In times of crisis, high volatility on the stock exchange is normal.
risk
'das Risiko' and 'die Volatilität' can both appear in conversations about money and investments. 'Risiko' means the possibility of suffering damage or a loss. 'Volatilität', on the other hand, describes how strongly and quickly prices or rates fluctuate. High volatility can make a risk greater, but it is not the same as risk. The words are easy to confuse because strong fluctuations often seem dangerous. To be precise: volatility describes the movement of the price, while risk describes the possible negative consequence.
Herr Kaya erklärt in der E-Mail die Volatilität des Marktes im letzten Monat.
In the email, Mr. Kaya explains the volatility of the market over the past month.
Bei dieser Aktie ist das Risiko hoch, weil die Firma noch keinen Gewinn macht.
With this stock, the risk is high because the company is not yet making a profit.