Risk Management
Published  6 MIN READ
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Volatility – Ubiquitous, Yet Evasive?

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.