Weighted fluctuation is a common way of index change in the financial field. It is the index change rate weighted by market value, that is, the market value of each stock accounts for the proportion of the total market value, so that the change of stocks with large market value will have a greater impact on the index. Usually, the higher the weighted fluctuation, the greater the market value of the company's stock changes have a greater impact on the index.

Weighted fluctuation is often used as an important indicator to judge the trend of the stock market. For example, in stock trading, the higher the stock index, the higher the overall market prosperity and the better the stock market operation. When forecasting the market trend, we can judge the trend of the market by analyzing the change of the weighted volatility index, and assist the investment decision.

Weighted fluctuation is an index of market risk management. By monitoring the weighted fluctuation, we can find out the risks brought by market price changes in time and take corresponding measures to reduce the risks, thus protecting market interests. Some funds and financial institutions will also plan and adjust their portfolios according to the changes of the weighted volatility index to optimize the risk-return ratio. Therefore, in the financial field, it is very important to analyze and use the weighted volatility index.