![]() However, you can measure a Vimeo stock's historical response to market movements and buy it if you are comfortable with its volatility direction. So, no matter how many positions you have, you cannot eliminate market risk. On the other hand, systematic risk is the risk that Vimeo's price will be affected by overall stock market movements and cannot be diversified away. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. Unsystematic risk is the risk that events specific to Vimeo or Technology sector will adversely affect the stock's price. Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. This type of volatility can be derived from derivative instruments written on Vimeo's to be redeemed at a future date. This means that the stock will return to its initially predicted market price. Implied VolatilityThis type of volatility provides a positive outlook on future price fluctuations for Vimeo's current market price. However, it cannot conclusively determine the future direction of the stock. ![]() It's commonly used to predict Vimeo's future behavior based on its past. There are two main types of Vimeo's volatility: Historical VolatilityThis type of stock volatility measures Vimeo's fluctuations based on previous trends. Investing in highly volatile security can either be highly successful, or you may experience significant failure. A highly volatile stock is riskier, but the risk cuts both ways. A stock with relatively stable price changes has low volatility. A stock that has erratic price changes quickly hits new highs, and lows are considered highly volatile. Investors will then calculate the volatility of Vimeo's stock to predict their future moves. These fluctuations usually indicate the level of risk that's associated with Vimeo's price changes. Volatility refers to the frequency at which Vimeo stock price increases or decreases within a specified period.
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