Financial volatility refers to the degree of variation in the price of a financial asset or market index over time. It is commonly measured by the standard deviation of returns or price changes, indicating how much the price of an asset can fluctuate in a given period. High volatility suggests greater unpredictability and risk, as prices can change rapidly in response to market events or conditions. Conversely, low volatility indicates more stable prices with smaller fluctuations. Volatility is an important concept in finance, as it affects investment decisions, risk management, and the pricing of financial instruments, such as options. Investors and analysts closely monitor volatility to assess market trends, gauge investor sentiment, and make informed trading strategies. In essence, financial volatility encapsulates the uncertainty and potential for dramatic changes in asset prices.
Patterson-UTI Energy's revenue reached $5.38 billion in 2024, a 30% increase year-on-year. The company suffered a net loss of $968 million, contrasting sharply with a profit of $246.3 million in…