# Parkinson Volatility Calculator MCP for AI Agents MCP

> Parkinson Volatility Calculator MCP uses high-low price ranges to provide a more accurate measure of intraday market volatility than standard close-to-close methods. It allows your AI agent to calculate annualized volatility, compare intraday movement against end-of-day moves, and determine volatility percentile ranks for better quantitative analysis.

## Overview
- **Category:** finance
- **Price:** Free
- **Endpoint:** https://edge.vinkius.com/vk_preview_WR1bGWyV6onf9620HA9I7uZQJpeCoOWDELoqGMlH/mcp
- **Tags:** volatility, parkinson, finance, quantitative, trading

## Description

Standard volatility measures often miss the real story because they only look at where a price starts and ends the day. This MCP changes that by focusing on the actual range between the high and low prices. By capturing that intraday movement, your AI agent gets a much clearer picture of how much a market is actually swinging. You can use it to find out if current price action is unusually intense compared to historical norms or if the intraday volatility is significantly outpacing the closing price movement. Instead of manually pulling price data and running formulas in a spreadsheet, you just give your agent the price ranges. It handles the math, the annualization, and the comparisons instantly. Whether you are looking for regime shifts or trying to price options more accurately, this tool gives your agent the quantitative edge it needs to understand market tension. It's part of the Vinkius catalog, meaning you can connect it to your preferred AI client and start running these calculations immediately without setting up a local environment.

## Tools

### calculate_parkinson_volatility
Computes the annualized Parkinson volatility for a specific set of price data. This provides a more accurate view of market movement using high-low ranges.

### compare_volatilities
Evaluates how current intraday volatility compares to end-of-day volatility. It helps you see if price swings are happening within the day or just at the close.

### get_volatility_context
Provides a comparative view of Parkinson volatility against standard close-to-close moves. It also returns the percentile rank to show how current levels compare to history.

## Prompt Examples

**Prompt:** 
```
What is the Parkinson volatility for these prices? Highs: [150, 152, 149], Lows: [148, 147, 145].
```

**Response:** 
```
Based on the provided high and low prices, the annualized Parkinson volatility is **0.284**. 

| Metric | Value |
| :--- | :--- |
| **Annualized Volatility** | 0.284 |
| **Data Points** | 3 |
| **Method** | Parkinson (High-Low) |
```

**Prompt:** 
```
How does the current intraday volatility compare to the end-of-day move for this asset?
```

**Response:** 
```
The intraday movement is significantly higher than the end-of-day move. 

* **Parkinson Volatility:** 0.22
* **Close-to-Close Volatility:** 0.14
* **Ratio:** **1.57**

This indicates that the asset is experiencing substantial price swings during the session that are not being captured by looking at the closing prices alone.
```

**Prompt:** 
```
Is the current market volatility unusually high?
```

**Response:** 
```
The current volatility is quite high relative to recent history. 

**Volatility Context:**
* **Current Parkinson Volatility:** 0.31
* **Percentile Rank:** **88th percentile**

This suggests that the current price action is more volatile than 88% of the historical observations in your dataset.
```

## Capabilities

### Calculate annualized volatility
Get precise annualized Parkinson volatility figures from a set of high and low price data.

### Compare intraday and end-of-day moves
Determine the ratio between Parkinson volatility and close-to-close volatility across different timeframes.

### Analyze volatility percentile ranks
Check how current market volatility compares to its historical distribution.

## Use Cases

### Detecting hidden intraday volatility
A trader notices a stock is quiet at the close, but asks their agent to use compare_volatilities to see if the intraday range suggests much higher actual movement.

### Assessing market extremes
A risk manager asks their agent to check the volatility percentile rank to see if current market swings are at historical extremes.

### Refining volatility models
A quant provides a list of daily highs and lows and asks the agent to run calculate_parkinson_volatility to get an annualized figure for a new asset.

### Comparing volatility regimes
An analyst uses the tool to compare how intraday volatility behaves differently across multiple timeframes for a specific commodity.

## Benefits

- Capture true market tension by using high-low ranges instead of just closing prices.
- Identify regime shifts by checking volatility percentile ranks with get_volatility_context.
- Detect intraday price surges by using compare_volatilities to see the ratio of intraday to end-of-day moves.
- Automate complex math by letting your agent run calculate_parkinson_volatility on demand.
- Get a more accurate view of risk by focusing on the actual range of price movement.

## How It Works

The bottom line is you turn raw price ranges into actionable volatility metrics through a single prompt.

1. Provide your agent with the high and low price data for the period you want to analyze.
2. The agent uses the Parkinson formula to process the intraday ranges and annualize the result.
3. You receive a specific volatility value, a comparison ratio, or a percentile rank based on your request.

## Frequently Asked Questions

**How does the Parkinson MCP improve my volatility analysis?**
It uses the high and low prices of a period rather than just the closing price. This captures the actual range of movement, giving you a much more accurate view of intraday risk.

**Can I use this Parkinson MCP to compare different volatility types?**
Yes. You can compare the Parkinson volatility against standard close-to-close volatility to see how much of the price action is happening within the trading session.

**How do I know if current volatility is an outlier using this MCP?**
You can ask your agent to provide the volatility percentile rank. This tells you exactly where the current volatility stands compared to its historical distribution.

**Does the Parkinson MCP work with any price data?**
It works with any set of high and low price data you provide. Your agent will handle the annualization and the math automatically.

**Can I use this Parkinson MCP in my existing trading workflow?**
Yes. Since it is an MCP, you can connect it to your AI client like Claude or Cursor and use it as a tool to perform calculations during your research or monitoring.