30-Day Historical Volatility (\(HV30\))

Brian Lee
Aug 12, 2025

Table of Contents

\(HV30\) stands for 30-day Historical Volatility. It measures how much a stock’s price has moved over the last 30 trading days and expresses that movement as an annual percentage. Because it uses a 30-day window, \(HV30\) changes slowly and gives a stable picture of how volatile the stock has been. It is calculated from Underlying Closing Price (\(S_{closing}\)) values recorded at the end of each trading day.

The volcalc tool for converting \(HV30\) values into expected price ranges or daily percentage moves has been deprecated.

Step 1: Compute Log Returns

For each trading day \(i\) in a time series of prices \(S_i\), compute:

\[ u_i = \ln\left(\frac{S_i}{S_{i-1}}\right) \]

These are daily log returns.

Step 2: Compute Standard Deviation of Returns

Let \(N\) be the number of log returns. Compute the sample standard deviation:

\[ s = \sqrt{\frac{1}{N - 1} \sum_{i=1}^{N} (u_i - \bar{u})^2} \]

where \(\bar{u}\) is the mean of the \(u_i\) values.

Step 3: Annualize the Volatility

If using \(252\) trading days per year, then:

\[ \sigma_{annual} = s \cdot \sqrt{252} \]