Tag Archives: VIX

VIX And Passive Investing Risk

The CBOE volatility index® VIX® is an instantaneous measure of expected fluctuations in S&P 500 in the next 30-days. This is an instrument for short-term traders. Passive investors should use different measures of risk. I offer an example.

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A Mean Reverting Stock Market With Increasing Risk

The daily returns of the S&P 500 exhibit mean-reverting behavior since the late 1990s but the index reached new all-time highs recently. I show in this article that this has been accomplished at increasing risk, despite beliefs that volatility is … Continue reading

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VIX Is Fooling Bears

Although the high of VIX was below 11 on January 27 of this year, the SPY ETF has gained 1.11% since. Some traders expected a quick rise in volatility and shorted the market but any gains in VIX evaporated fast … Continue reading

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VIX Trolls [Premium Articles]

This article rebuts claims by some market analysts about VIX and exposes the main flaw in strategies developed by inexperienced quants that trade volatility ETPs . For access to premium content, you must be a subscriber. Please login if you are … Continue reading

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All That VIX Nonsense

I just about had it with all that VIX nonsense in the social media. VIX is an overrated indicator that reacts to price. Price is everything and VIX obeys price in a special way: When prices rise, VIX falls and … Continue reading

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VIX Does Not Always Move Opposite To S&P 500

Yesterday the S&P 500 fell but VIX also fell. Some traders were expecting VIX to rise since stocks fell. But in the markets there are no perfect correlations. Historically, the VIX has moved opposite to S&P 500 about 78% of … Continue reading

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