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Volatility

HV Term Structure

HV across different measurement windows from short to long

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What is HV Term Structure?

HV Term Structure The shape of historical volatility plotted across different measurement windows (5-day through 1000-day). A normal upward-sloping structure means longer-window HV is higher. An inverted structure (short-term HV above long-term) indicates a recent spike in realized moves that hasn't been sustained historically.

Complete definition

The shape of historical volatility plotted across different measurement windows (5-day through 1000-day). A normal upward-sloping structure means longer-window HV is higher. An inverted structure (short-term HV above long-term) indicates a recent spike in realized moves that hasn't been sustained historically.

Example

If 10-day HV is 40% but 252-day HV is only 25%, the term structure is inverted — the stock has been moving more than usual recently. This often mean-reverts.

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