The volatility of a share is the amount it fluctuates intra day and from day to day. To illustrate this, consider the chart below over a 12 month period.

This company invests in a portfolio of shopping centres. The underlying product has a low volatility, so the company share price has a low volatility. From the lowest to the highest peak, this company’s share price varied by 12% in the 12 months shown.

On the other hand the media company below varied by 70% from the lowest to the highest points. The markets it deals in are very competitive and the methods and channels used to collect and disseminate information are constantly evolving. This company has a higher volatility than the above one, as the share price moves around a great deal more from day to day.