Knowledge Series

Historical vs Implied Volatility


In this part of our Knowledge Series, we present the difference between Historical (Realized) and Implied Volatility. We take a couple of examples of Coffee and Sugar and see how their Historical and Implied volatilities moved over a period of time.

[For an advanced Empirical Analysis of which amongst the two Volatility methods is better for estimating VaR, you might want to download our Whitepaper here.]