Let's say a stock's price has been steadily rising for the last 6 months.
It's going to have (a relatively) high volatility.
Let's say another stock's price has been falling steadily for the last 6 months.
It's going to have high (a relatively) volatility.
High volatility = High risk.
Assuming both stocks have the exact same volatility, ceteris paribus, both will have the same risk.
To my (perhaps non-sophisticated) brain, this doesn't make sense.
Is there a measure of volatility that weighs movement in the positive direction differently than movement in the negative direction? Shouldn't there be one?
Or am I thinking this wrong?