Do you agree? If yes, why? If no, why not?
Rules : only one post per person per hour.
Re: Volatility = Risk
This thread definitely has a very low VIX. So is that a buying opportunity? Or a contrarian indicator?
Re: Volatility = Risk
No,
Previously people thought volatility was a good measure of risk which is the standard deviation. Historically the more volatile an asset is the higher the risk, but recent analysis has shown that low SD can be hiding troubling factors.
Also volatility is non directional where as risk is directional(typically negative).
(hypothetically) A stock gaining irregular gains every other day is highly volatile but not risky
Re: Volatility = Risk
Post more often Crabman.