VIX investment management (Volatility Index) is a Asset Management financial index that measures the volatility of the options puts the SandP 500 is a widely used measure of market risk.
At the time there is high volatility, stocks the VIX reached a high figure and is correlated with a decrease of The the SandP 500, indicating NYSE that there is market pessimism and fear, and often coincides with the minimum benchmark, is now where heavy movements in equity markets, whereas when the VIX is at hedge funds minimum, there is joy and confidence. funds Is calculated using investors a number of Ribostky options SandP 500. Although there are other indices of volatility, such as the Nasdaq 100 investment for the VXN and the VXD for the Dow Jones Industrial Average, the VIX is the most famous and used.
The theory of this indicator is that if the market is bearish, investors believe the family of funds market fund management will fall, will cover over their portfolios by buying puts on the contrary, if the operators are not buying puts upside, because it will not public companies see the need to protect . Ultimately discounted expectations in the near investment portfolio future and hedge funds generally works in reverse to the index. Below 20 is an indicator of potential roof stock in financial markets.