Volatile — fleeting, flying into the ether?

volare, volvere

To wish, to want — wehl

Real life is more interesting with volatility

Fly— voleo (I fly)

The evolution of the meaning of “volatility” from its Proto-Indo-European roots to its contemporary usage in finance and other fields is a fascinating linguistic journey that reflects both literal and metaphorical adaptations.

1. Proto-Indo-European Roots: The PIE root *welə- initially involved meanings around physical motion such as turning, rolling, or flying. This base sense of movement is central to understanding how the word’s meaning evolved over time.
2. Latin Usage: In Latin, this root evolved into words like “volare” (to fly) and “volatilis” (capable of flying, fleeting, or ephemeral). The use of “volatilis” in describing substances that easily vaporize at room temperature—such as alcohol or essential oils—links the sense of physical movement (flying) to a state change (liquid to gas).
3. Scientific Context: By the 17th century, as scientific understanding grew, “volatile” in English began to describe chemicals that vaporize at relatively low temperatures. This usage underscored the transitory nature of their state—a quick transition from liquid to gas—emphasizing rapid and unpredictable change.
4. Economic and Financial Adaptation: The leap from a scientific to a financial context probably occurred due to the similar nature of rapid and unpredictable changes. In finance, “volatility” refers to the degree of variation in trading prices over time. Just as volatile substances quickly change from one state to another, financial volatility implies swift changes in value. The unpredictability and speed of these changes reflect the original meanings of flying or moving quickly.
5. Broader Metaphorical Use: Today, “volatility” is not just a financial term but is also used more broadly to describe any situation that is subject to rapid, unpredictable changes, similar to how “volatile” substances quickly evaporate or react.

Throughout these phases, the core idea of rapid and unpredictable movement or change remains a consistent theme, demonstrating how the original PIE meanings have expanded yet stayed remarkably aligned with modern interpretations.

The term “volatility” and its Latin roots “volatilis” and “volare” can be traced further back to the Proto-Indo-European (PIE) root *welə-. This root carries meanings associated with turning, rolling, or flying, and is also the source of other related words in various Indo-European languages.

From this PIE root *welə-, we get a variety of derivatives, including:

• Latin “volare”: meaning “to fly.”
• Latin “volvere”: meaning “to roll,” which has also led to words like “revolve” and “involve” in English.
• Sanskrit “ulati”: meaning “wanders,” “turns.”
• Old Church Slavonic “valiti”: meaning “roll,” “turn.”
• Lithuanian “vilnis”: meaning “wave.”

These examples show how the PIE root *welə- broadly pertains to concepts of movement, whether through air (flying) or along a surface (rolling, turning), which aligns with the dynamic and changing nature implied by “volatility” in both physical and financial contexts.

The word “volatility” originates from the Latin noun “volatilis,” which means “fleeting, transitory, flying.” This in turn is derived from the verb “volare,” meaning “to fly.” The term was initially used in the physical sciences to describe the quality of substances that readily vaporize or evaporate, such as volatile oils or spirits.

In financial contexts, “volatility” has been adapted to describe rapid and significant price movements—both up and down—within markets. The use of “volatility” in this way metaphorically refers to the speed and unpredictability with which prices can change, akin to the unpredictable and rapid movements of something flying. The term captures the essence of rapid shifts in valuation and the transient nature of those shifts, embodying both the opportunity and risk inherent in financial markets.