Rolling Volatility

What it means: This tracks how volatility changes over time, showing if your investment is becoming more or less risky.

In plain terms: Rolling volatility reveals when markets are calm and when things are getting shaky.

Example: Stocks might have low volatility in stable markets, but rising volatility before big drops or rallies.

Bonds vs Equities vs Crypto:

• Bonds: Rolling volatility nearly flat, markets rarely panic much.
• Equities: Volatility spikes during recessions or political shocks.
• Cryptos: Volatility constantly shifts, reflecting hype cycles.

How to use it: Watch this metric like a weather forecast for risk. If rolling volatility starts rising steadily, it’s worth checking what’s driving uncertainty. Combine it with rolling return for a fuller view, rising returns with controlled volatility is a good sign; rising volatility with falling returns is a warning light.