Notes
- Converts volatility between time periods.
- More precise than the rule of 16, but just as fast.
- Assumes 12 months, 52 weeks, 365 calendar days per year.
- Customizable trading days per year, default 252.
- Conversion factor is
sqrt(target_period / source_period), as volatility scales with the square root of time. - Assumes constant volatility; does not account for seasonality, time-of-day effects, regime shifts etc.