Volatility thus mathematically represents a drag on the CAGR (formalized as the "volatility tax"). More stocks give lower price volatility. These indices Common factors include Growth, Value, Size, Yield, Momentum, Quality, and Volatility. The NASDAQ was no exception, experiencing record levels of market volatility. Risk may depend on the volatility in value of collateral assets. This approach addresses certain problems identified with hedging under local volatility. Orderly capital account liberalisation would be promoted with adequate safeguards against volatility and systemic risks. Backed stablecoins are subject to the same volatility and risk associated with the backing asset. It relies on predicting the future direction of implied volatility. This was followed by a long literature on the relationship between economic growth and volatility. See stochastic volatility and volatility smile for more information. Zomma measures the rate of change of gamma with respect to changes in volatility. It is common knowledge that types of assets experience periods of high and low volatility. The economy of Iceland is small and subject to high volatility. Attacks against the United Opposition increased in volatility and ferocity.