Definition

Volatility Cones provide a visualization of the percentile distribution of realized volatility for a specific spot trading pair across multiple measurement windows, relative to a selected end date. This data allows investors and analysts to observe how historical volatility has varied over different time frames and assess the potential range of future volatility. By analyzing these cones, users can identify patterns and trends in volatility behavior, which can inform risk management strategies and enhance decision-making in trading and portfolio management.

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Details

Using this Amberdata endpoint for derivatives realized volatility cones provides a detailed percentile distribution of realized volatility for a specific spot trading pair, such as BTC/USD on the GDAX exchange. This distribution is available across multiple measurement windows, allowing for a comprehensive analysis of volatility trends over different time frames. For example, a query result could show the 180-day realized volatility is approximately 57.86%, with a minimum of 39.12% and a maximum of 112.16%. The 50th percentile (median) volatility for this period is 69.90%, indicating that half of the observed volatility values fall below this level. Again, this is an example of what the data can show.

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Availability

/Volatility Cones

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Frequently Asked Questions

How can volatility cone data from Amberdata be used to understand the historical behavior of a cryptocurrency's price movements over different time frames?

• Volatility cones provide insights into the historical distribution of realized volatility for a specific trading pair across multiple measurement windows. By examining these cones through the Amberdata endpoint response, users can gain a deeper understanding of how a cryptocurrency's price volatility has evolved over time, helping them to identify patterns and trends that may influence future market behavior.