The range of the VIX (stocks) over the past year has been from around 16 up to 36, a factor of 2.25, while MOVE (10-year bond) has ranged from 98 to 199, as factor of 2.03; they are pretty close but it looks as thought equities have the edge.
Bond rates are lower over time than the general return of the stock market. Individual stocks may outperform bonds by a significant margin, but they are also at a much higher risk of loss. Bonds will always be less volatile on average than stocks because more is known and certain about their income flow .
Investortopia
Stocks are much more volatile, and there is a higher chance of losing your investment since equity holders are subordinated to debt holders if a company is forced to liquidate. However, in return for the risk, stockholders have a greater potential return.Feb 1, 2023
Corporate Financial Institute
DB2,
You are closer to the truth than either of those proper well written Google results. The two results are misinformation.
You have calculated the standard deviation of sorts.
What you have not done is set that deviation against average return. Meaning that bonds return less and therefor the deviation in real terms is much worse. Meaning very similar volatility for a lower return is a bad bet. You should assume volatility includes a discussion of return.
The investor pays for volatility at times out of the returns. We are only concerned with the returns.
