by Eben Maré, Portfolio Manager, Stanlib
In this article we discuss aspects of asset class volatility. We look specifically at the VIX index and some of its properties – VIX has become very popular in the media of late, especially with low historical levels being printed. We try to understand its implications.
What is volatility?
Volatility is a statistical measure of the dispersion of asset returns. High volatility levels would typically imply a large spread (or distribution) of potential asset returns when compared to an asset with low volatility.