👉 The Hurst exponent, also known as the Hurst coefficient, is a measure of the sensitivity of financial time series to changes in their parameters. It provides an estimate of how quickly and strongly financial variables tend to change over time, which can be useful for understanding volatility and risk. The term "Hurst exponent" was coined by mathematician Richard Hurst in 1958. The Hurst exponent is defined as the ratio of a certain power (typically 2) to the square