Volatility poses no risk beyond mere discomfort.
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So volatility can be a bi-product of risk, but doesn't embody risk by itself. Stock in a reasonably priced, good company can become volatile for a myriad of reasons, of which the increased volatility may make it less risky. So fickle, hah.
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Great explanation. I agree that there seems to be a correlation between high-vol & poor quality, which seems to be why both work as a solid negative pre-screen, sometimes removing the same names. I tie volatility to behavioral risk. Higher vol = Higher behavioral risk.
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