1. Rule Based Volatility Investment
Learning to Love Volatility
“Investing in volatility” might seem a contradictory phrase. Semantically we tend to equate volatility with unpredictability and chaos, precisely the abstract forces that foil most investment strategies. It is not intuitive to think of volatility as something innately valuable, nor to recognize volatility as a rich and unique asset class. Even many experienced financial professionals comfortable reading an earnings report think of volatility markets as an esoteric technical subject better left to options traders. Underlying complex mathematical pricing models, however, are intuitive market principles that explain why a “volatility premium” exists and how it can greatly benefit most ...
Get Rule Based Investing: Designing Effective Quantitative Strategies for Foreign Exchange, Interest Rates, Emerging Markets, Equity Indices, and Volatility now with the O’Reilly learning platform.
O’Reilly members experience books, live events, courses curated by job role, and more from O’Reilly and nearly 200 top publishers.
