The Application of R Software in the Calculation of Volatility

Abstract

With rapid development of the economy, change has become the essential nature and the most important feature of the financial markets.So the position of volatility is second to none, it can reflect changes of indicators in the financial market. Of course, volatility calculation is very complicated. Volatility calculation of the real issues often rely on computer software.R software is powerful statistical software package which developed rapidly these years.It is a free and open source software and belongs to the GNU system.This paper studies how to use R software programming to implement the calculation of volatility, combined with examples for authentication, and then analyze the result and forercast.The study has shown that R software can quickly and easily complete the calculation of volatility with high accuracy, which has positive sense for the sensitive market.Also,the study demonstrated the usefulness of R software.It has obvious advantages in data processing and computing.

Key words: R Software; Volatility; Financial Simulation