The volatility of an asset’s absolute return (i.e., its return measured irrespective of a benchmark rate) as opposed to its relative return (set against a benchmark). This volatility may be positive (upside) or negative (downside) or at times stagnant, depending on the sole performance of the asset in question.

In another context, absolute risk may also refer to a measure of interest rate risk that is typically expressed as the loss in interest payment corresponding to a 100 basis point (1.0%) parallel shift in the yield curve.