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Risk-metrics volatility model

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Simple script that uses Risk-metrics volatility model (it's an exponential model) to estimate the standard deviation of daily log-returns.

Check this page for more details -> investopedia.com/articles/07/ewma.asp

BE CAREFUL:
- It only works with daily timeframe (I made sure that the script plots the volatility only when "D" time frame is selected)
- It doesn't plot the estimated variance, but the estimated std. dev. Compute the square of the std.dev to obtain the variance, if you need it.

Risk-metrics volatility model is a very simple method to estimate the variance/std.dev. of daily log-returns. It doesn't require any parametric estimation technique (like OLS or Maximum likelihood) because it uses a fixed weighting parameter set to 0.94 (however you can change the parameter value from the settings window). The result can be used to implement more complex models for forecasting purposes. The recursive nature of this model also lets you extrapolate future values of the volatility itself.

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