Trading volatility as an asset class is a new, and at times confusing, concept. For many investors, the term volatility simply describes the range and speed of movements on a stock exchange or index.
However, savvy hedge fund managers and traders increasingly view volatility as an asset class that can help with portfolio diversification and generate significant returns in a turbulent market.
Volatility can be traded through instruments like volatility swaps, variant swaps, futures, correlation swa
The week on Risk.net, December 2–8, 2017Receive this by email