StockVolatilityThreeMonths: Calculate Short-Term Volatility Quickly

The StockVolatilityThreeMonths function helps you easily get the short-term volatility (standard deviation of daily returns) of a stock over three months (approximately 90 days). This allows traders and analysts to quickly assess the recent fluctuations in a stock’s price without building complex spreadsheets or relying on external tools.

With one simple formula, you can get updated three-month volatility values directly in your Excel workbook for any valid symbol. This can be incredibly helpful for risk assessment, portfolio optimization, and gauging market sentiment toward a particular stock.

Why Use This Function?

• Quickly assess short-term price fluctuations: Saves time by automatically retrieving and calculating the standard deviation of daily returns over the last three months.
• Compare multiple stocks: Easily identify which stocks are more volatile by applying the function to different symbols in adjacent cells.
• Conduct risk analysis: Evaluate the near-term risk profile of a stock before making trading decisions.
• Use in portfolio optimization: Combine the calculated volatility with other metrics to refine your allocation strategy or identify potential hedging candidates.
• Integrate seamlessly with existing sheets: No need to switch between platforms; the function runs within your familiar Excel environment.

How to Use in Excel

StockVolatilityThreeMonths(Symbol)

1. Select a cell in your Excel sheet.
2. Type =StockVolatilityThreeMonths("Symbol")
3. Replace "Symbol" with the ticker you want, for example "AAPL" or a reference to a cell containing the ticker.
4. Press Enter to retrieve the volatility value.

The function interacts with the backend to query recent price returns for the specified symbol (90 calendar days where data is available) and calculates the standard deviation of those daily returns. It then displays the result directly in Excel.

Parameters Explained

• Symbol is the only input. Ensure the ticker is valid (e.g., an NYSE or NASDAQ stock).
• The function automatically checks if you have a valid license. If not, “NA” or a license message may appear.

Example Usage

Basic Examples

1. Volatility for Apple (AAPL):
   =StockVolatilityThreeMonths("AAPL")
   This returns Apple’s approximate three-month volatility based on daily returns.

2. Volatility for Microsoft (MSFT) in a referenced cell:
   Suppose cell A1 contains MSFT. Then you can write:
   =StockVolatilityThreeMonths(A1)

3. Multiple stocks at once:
   A1: "AAPL"
   A2: "MSFT"
   A3: "GOOGL"
   Then in B1, B2, B3 you can write the function accordingly:
   =StockVolatilityThreeMonths(A1)
   =StockVolatilityThreeMonths(A2)
   =StockVolatilityThreeMonths(A3)

Advanced Scenarios

• Evaluating smaller exchanges or international tickers: Some foreign or less common stocks might not have a full 90-day data history. In these cases, the function may return “NA” if not enough data is present.

• Risk portfolio analysis: Create a table of 20+ tickers, use StockVolatilityThreeMonths in each row, then compare each result to gauge the shorter-term risk profile of your entire watchlist.

• Integration with other Excel functions: Combine the result with average returns, Beta, or correlation values to build advanced risk management or trading strategy sheets.

Common Questions and Troubleshooting

• “Why am I seeing NA in the cell?”

• The function checks your license first. If the license is invalid or expired, it returns “NA.”
• If an invalid symbol is provided or no data is available for that symbol, it can also return “NA.”

• “What if the data is insufficient?”

• If there aren’t enough data points (e.g., fewer than two trading days within that 90-day window), the backend might return an error message or “NA.” In practice, you need at least a handful of dailyprice points for a meaningful volatility calculation.

• “Is the volatility result annualized?”

• This function returns the standard deviation of daily returns over the past three months, not annualized. If you need annualized volatility, you can multiply this result by the square root of 252 or use another suitable approach based on your specific analysis or data requirements.

By incorporating StockVolatilityThreeMonths in your workflow, you can quickly compare daily price fluctuation levels across different stocks without complex manual steps. It’s an excellent building block for short-term risk analysis, portfolio adjustments, and rapid comparative studies—all right within Excel.