Measuring Historical Volatility, Ederington, Guan, 2004

Measuring Historical Volatility

This paper by Louis H. Ederington (University of Oklahoma) and Wei Guan (University of South Florida St. Petersburg) proposes the adjusted mean absolute deviation as an alternative method for measuring historical volatility and provides tests of how well this method forecasts volatility, comparing it to traditional methods (standard deviation and GARCH).

The paper was first released in August 2004 and then published in Journal of Applied Finance, Vol. 16, No. 1, Spring/Summer 2006.

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SSRN
https://papers.ssrn.com/sol3/papers.cfm?abstract_id=926167

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The University of Oklahoma
https://faculty-staff.ou.edu/E/Louis.H.Ederington-1/papers/Historical_vol_paper.pdf

Financial Management Association – Journal of Applied Finance
https://www.fma.org/Journals/JAF/JAFSpSu06Issue.pdf

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