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Not very useful now. VXV is 90-day volatility, VIX is 30-day volatility, so if 90-day volatility is far higher than the 30-day volatility then it means the price will be lower in 90-day. Vice versa. However in reality trading, it's very difficult to timing, you never know which level of the ratio is very high/low and you never know how long such a very high/low ratio would last. So it's now just a minor factor.vikasrao wrote:Hi guys, I'm not very clear about VIX:VXV ratio, any significance when its above 1? I'm looking at this in the chart book http://stockcharts.com/public/1684859/c ... /139801120
Thanks.