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To put it in the a good way, volatility identifies how frequently and how much a position will pay aside. Lowest volatility function brief victories happens more frequently, nevertheless the quantity try smaller. Highest volatility form large gains is you are able to, nonetheless they happens reduced often. Very, which have lowest volatility ports, you earn more often, nevertheless wins are small. With high volatility ports, gains are unusual but may getting big after they takes place. Lower volatility mode frequent brief wins; highest volatility function uncommon however, bigger of these.