Clearly, there are different possible channels through which volatility may affect growth, some with positive and some with negative predicted relationships.
While the preceding theoretical discussion is obviously far from complete, the point is to illustrate that theory alone cannot settle the debate over the relationship between volatility and growth.
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1987, page 27) note that the negative relation in regression (1) can be explained as follows: If the excess market return is positively related to expected volatility and volatility is highly persistent, then a positive unexpected change in volatility (and an upward revision in predicted volatility) increases future expected risk premiums and lowers.
There is a large strand of that explores the predictive abilities of historical and implied volatility, and proposes how historical and implied volatility can be used in dynamic asset allocation.
The type of control was previously available to only large institutions in the often opaque and unregulated over-the-counter volatility
Thus, to a certain extent market volatility
is unavoidable, even desirable, as the stock price fluctuation indicates changing values across economic activities and it facilitates better resource allocation.
The chart at left shows the similar pattern followed by the volatility
of nonfarm payroll employment growth.
The paper finds very strong evidence for the influence of volatility
on an SOE.
After the CBOE introduced the S&P100 Index options in 1983, Cox and Rubinstein (1985) proposed to create a market implied volatility
index by averaging near-the-money call options to obtain an at-the-money index with a constant time to maturity.
The Wall Street Challenger, LLC presents two enhanced systematic volatility
trading strategies that benefit from rapid price movements: Increased Volatility
Targeted Strategy (IVTS) and Geared Increased Volatility
The Intraday Volatility
Forecast will be disseminated via the data feeds CEF Core and CEF ultra+ Eurex as well as via the Eurex infrastructure.