The Volatility Tool is supported by Internet Explorer 9 (or later) and the latest versions of Firefox, Chrome, Safari or Opera.

To see the volatility saving by using the WOCU compared to another currency pair; select….

Currency 1“ for example the currency of your trading partner
Currency 2“ for example your currency
Start Date“ default is 1 January, 2000 (adjustable)
End Date“ default is the last day of the previous month (adjustable)

Click the Submit button. Numerical results are shown in the top box:

(1) The volatility of Currency 1 vs. Currency 2 over the period
(2) The volatility of the WOCU vs. Currency 2 over the period
(3) The WOCU reduction factor is expressed as a percentage: how much volatility would have been reduced by using the WOCU

The chart shows historical exchange rates (base lined to a starting value of 1)

The red line shows Currency 1 vs. Currency 2 exchange rate
The green line shows WOCU vs. Currency 2 exchange rate

By trading with your partner via the WOCU, you can both simply eliminate a great deal of volatility, reducing risk to both parties and leading to easier and more reliable forecasting of future costs and/or revenues. You can read more on this in our White Papers and Case Studies section.

Calculation Note:

The volatility calculation over the period selected is based on the standard deviation, being the square root of the average squared deviation of the data from its mean.