Trading Volatility in the Asian Sub-Continent

Abstract

Greed and fear has a lot of influence on short term valuations. This can be good for investors who are right and quite nasty for those who are wrong. A peek through volatility index movements unravels the relevance of such an indicator as a perfect proxy for investor fear and greed — an altar of short term speculative investors. Unfortunately there are no Asian exchanges offering volatility indices on local markets. As mindsets change and more investors view volatility as an asset class, markets would be encouraged to roll out exotic products on trading volatility.

TOPICS: Emerging, statistical methods, accounting and ratio analysis