Cutting-edge research has produced a more accurate methodology to analyse the volatility of financial assets, improving upon methods that are currently being used.
The financial crisis that caught the world by surprise has left economists searching for causes and rethinking economic models. The EU-funded project HETEROVOL (Heterogeneity and the volatility of financial assets) proposed a new approach for analysing the volatility of financial assets. It looked at creating a novel framework for modelling heterogeneity in economics – i.e. variation across individual units of observations – in order to further analyse volatility.
Further details: New economic theory on the volatility of financial assets