Tag: RiskAnalysis

Volatility indexes are essential tools for investors who seek to measure the fear, uncertainty, and market sentiment. Unlike standard market indexes that track the performance of a basket of stocks, volatility indexes reflect the market's expectation of volatility in the near future. In this article, we will delve into the intricacies of volatility indexes, how they function, and their significance in equity markets. What is a Volatility Index? A volatility index is a real-time market index representing the market's expectation of 30-day forward-looking volatility. The index is derived from the price...