Meaning of volatility cluster | Babel Free

Definitions

The occurrence of a great swing in an index being nonrandomly adjacent to others.

countable, uncountable

Examples

“Figure 3 shows the volatility clustering for oil, gold, and the five developing bond market return series in the period between 2008 and 2022. Regarding the magnitude of volatility clustering, China, India, Russia, and especially oil, appear more volatile than other markets and volatility clusters occurred around 2008-2010 because of worldwide economic instability. The reason for the volatility clusterings in 2008-2009 in Figure 3, was the crisis precipitated by the collapse of subprime mortgages in the U.S. in 2008.”

CEFR level