In terms of theory, relatively little attention has been paid to the effect of business-cycle volatility on long-run economic growth.
There are also reasons to suspect a positive relationship between volatility and growth.
options exchange and creator of listed options, continues to set the bar for options and volatility
trading through product innovation, trading technology and investor education.
Regression (2) advocates that the excess market return is positively related to expected volatility
and negatively related to unexpected volatility
In light of the potential for volatility
to rise, in the short term we recommend considering stocks that offer decent dividend yields (cut-off dates are largely in April-June) and have shown belowaverage volatility
over the past six months.
We know from talking to our global customer base that effectively managing risk between realised and implied volatility
, correlation arbitrage, and hedging the volatility
of their portfolios with currencies are vital.
Capital market volatility
may be conceived of a degree to which asset prices tend to fluctuate.
Our graph shows that the volatility
of GDP growth has increased during the current recession.
Second, rather than looking at the empirical long-run relationship between exports and a set of variables, we analyze the impact of volatility
per se adopting a flexible lag approach.
Firstly, because implied volatilities are considered to be forward-looking measures of market volatility
(Fleming et al.
The level of risk exposure that an investor takes is fundamentally tied to their exposure to portfolio volatility
The Intraday Volatility
Forecast is based on a proprietary mathematical model that uses historical futures data to forecast the direction and magnitude of volatility