Article
The Low VIX Hides Fierce Undercurrents
The Low VIX Hides Fierce Undercurrents
Via RealInvestmentAdvice.com,
Goldman Sachs’ volatility desk made the following comment:
“With the VIX back to its lowest levels in more than a month, our Vol desk is focused on hedging opportunities as 1-month S&P implied correlation is near its lowest level in 20 years.”
Simply, a low VIX can convey a sense of market calm on the surface, yet implied correlation tells a different story.
The VIX, based on option trading data, measures the implied volatility of the S&P 500 index.
A low VIX means traders expect the market...
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