Researchers developed a method to estimate stochastic volatility models by first estimating the volatility process and then using standard methods for diffusion processes. This method works for both parametric and nonparametric models. The estimators of the volatility model's drift and diffusion terms may have biases and variances initially, but these diminish over time. The estimators eventually have properties similar to those based on direct observations of the volatility process. A simulation study was conducted to assess the performance of the proposed estimators.