# GARCH

*Risk & Portfolio — Finicade finance glossary*

A model that captures volatility clustering — the way calm and stormy periods bunch together — by letting today's variance depend on yesterday's. The workhorse for forecasting how choppy markets will be.

**Related terms:** [EWMA](https://finicade.com/glossary/ewma), [Historical Volatility](https://finicade.com/glossary/historical-vol), [Volatility](https://finicade.com/glossary/volatility)

**Taught in:** Risk Arena — Volatility That Moves: EWMA & GARCH

Source: https://finicade.com/glossary/garch