The S&P 500 and VIX have moved together about 22% of the time in daily timeframe. Below we include analysis and backtests to investigate the potential short-term impact on price action of these events. Access to full article requires Premium Insights subscription.
The daily chart below shows that about 22% of the time S&P 500 and VIX returns have the same sign.
Some traders think that S&P 500 and VIX daily returns have opposite signs for the most part but as the chart above shows this is only true about 78% of the time.
Yesterday (June 8, 2020) VIX rose 5.3% while the S&P 500 gained 1.2%. What does this mean about short-term price action?
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