Carry trades blow up during
times of high volatility, which typically have high yield bonds or countries seeming to be more risky than usual.
Often referred to as «variation margin», margin called for this reason is usually done on a daily basis, however, in
times of high volatility a broker can make a margin call or calls intra-day.
Values may fluctuate significantly in
times of high volatility or market / economic uncertainty; such swings are even more significant if your positions are leveraged and may also adversely affect your position.
Especially during
times of high volatility.
The Japanese yen has always been a strong performing currency, often looked to as a safe option during
times of high volatility in the forex markets.
But this isn't all that helpful, because after all in
times of high volatility your position sizing is already limited.
This is especially true during
these times of higher volatility.
Not exact matches
Timmer: You know, the last two years until the January
high, were really extraordinary
times for the market, and I fear that investors got spoiled by that, because the S&P was up I think 52 % in two years and in 2017 the
volatility — the standard deviation
of those returns — was at an all -
time low
of 3.9.
The
higher volatility of bear markets tends to chop up these funds over
time.
Actual results, including with respect to our targets and prospects, could differ materially due to a number
of factors, including the risk that we may not obtain sufficient orders to achieve our targeted revenues; price competition in key markets; the risk that we or our channel partners are not able to develop and expand customer bases and accurately anticipate demand from end customers, which can result in increased inventory and reduced orders as we experience wide fluctuations in supply and demand; the risk that our commercial Lighting Products results will continue to suffer if new issues arise regarding issues related to product quality for this business; the risk that we may experience production difficulties that preclude us from shipping sufficient quantities to meet customer orders or that result in
higher production costs and lower margins; our ability to lower costs; the risk that our results will suffer if we are unable to balance fluctuations in customer demand and capacity, including bringing on additional capacity on a timely basis to meet customer demand; the risk that longer manufacturing lead
times may cause customers to fulfill their orders with a competitor's products instead; the risk that the economic and political uncertainty caused by the proposed tariffs by the United States on Chinese goods, and any corresponding Chinese tariffs in response, may negatively impact demand for our products; product mix; risks associated with the ramp - up
of production
of our new products, and our entry into new business channels different from those in which we have historically operated; the risk that customers do not maintain their favorable perception
of our brand and products, resulting in lower demand for our products; the risk that our products fail to perform or fail to meet customer requirements or expectations, resulting in significant additional costs, including costs associated with warranty returns or the potential recall
of our products; ongoing uncertainty in global economic conditions, infrastructure development or customer demand that could negatively affect product demand, collectability
of receivables and other related matters as consumers and businesses may defer purchases or payments, or default on payments; risks resulting from the concentration
of our business among few customers, including the risk that customers may reduce or cancel orders or fail to honor purchase commitments; the risk that we are not able to enter into acceptable contractual arrangements with the significant customers
of the acquired Infineon RF Power business or otherwise not fully realize anticipated benefits
of the transaction; the risk that retail customers may alter promotional pricing, increase promotion
of a competitor's products over our products or reduce their inventory levels, all
of which could negatively affect product demand; the risk that our investments may experience periods
of significant stock price
volatility causing us to recognize fair value losses on our investment; the risk posed by managing an increasingly complex supply chain that has the ability to supply a sufficient quantity
of raw materials, subsystems and finished products with the required specifications and quality; the risk we may be required to record a significant charge to earnings if our goodwill or amortizable assets become impaired; risks relating to confidential information theft or misuse, including through cyber-attacks or cyber intrusion; our ability to complete development and commercialization
of products under development, such as our pipeline
of Wolfspeed products, improved LED chips, LED components, and LED lighting products risks related to our multi-year warranty periods for LED lighting products; risks associated with acquisitions, divestitures, joint ventures or investments generally; the rapid development
of new technology and competing products that may impair demand or render our products obsolete; the potential lack
of customer acceptance for our products; risks associated with ongoing litigation; and other factors discussed in our filings with the Securities and Exchange Commission (SEC), including our report on Form 10 - K for the fiscal year ended June 25, 2017, and subsequent reports filed with the SEC.
Although value stocks typically hold up better in
times of volatility, this bull market has been exceptionally smooth — up until the last year, that is — and favored
high - growth momentum stocks, which tend to have more expensive valuations.
In a guest post in The
High Frequency Trading Review, Narang freely admits that «there has been an increasing incidence, in recent times, of days exhibiting unusually high volatility (measured as days when the close - to - close return, or alternatively, the high - low trading range are large in magnitude).&ra
High Frequency Trading Review, Narang freely admits that «there has been an increasing incidence, in recent
times,
of days exhibiting unusually
high volatility (measured as days when the close - to - close return, or alternatively, the high - low trading range are large in magnitude).&ra
high volatility (measured as days when the close - to - close return, or alternatively, the
high - low trading range are large in magnitude).&ra
high - low trading range are large in magnitude).»
The exact size and growth
of this workforce is debated, but workers employed under precarious work conditions make up a significant portion
of the larger workforce, with estimates that 4 out
of every 10 workers are now employed in precarious situations.49 These workers typically face
higher income
volatility than workers in traditional employment relationships because they spend more
time unemployed or underemployed and some have low earnings.50
The stochastic discount factor is
time varying and by just the right amount to explain the variance in returns (and the
high volatility of the stock market).
* Trading in Cryptocurrency CFDs involves a
high risk
of loss
of funds over a short period
of time due to the extreme
volatility surrounding cryptocurrencies.
For example, some
time back HFT was blamed for
higher volatility in the cattle market, even though such trading represents a smaller fraction
of cattle trading than it does for other contracts, and especially since there is precious little in the way
of a theoretical argument that would support such a connection.
When
volatility is relatively
high options prices will usually be slightly
higher, so out
of the money put options should be a little more expensive than during
times of lower
volatility.
Longer
time horizons mean investors can benefit from
higher returns
of riskier assets like stocks, while weathering short - term
volatility.
These risks and uncertainties include food safety and food - borne illness concerns; litigation; unfavorable publicity; federal, state and local regulation
of our business including health care reform, labor and insurance costs; technology failures; failure to execute a business continuity plan following a disaster; health concerns including virus outbreaks; the intensely competitive nature
of the restaurant industry; factors impacting our ability to drive sales growth; the impact
of indebtedness we incurred in the RARE acquisition; our plans to expand our newer brands like Bahama Breeze and Seasons 52; our ability to successfully integrate Eddie V's restaurant operations; a lack
of suitable new restaurant locations;
higher - than - anticipated costs to open, close or remodel restaurants; increased advertising and marketing costs; a failure to develop and recruit effective leaders; the price and availability
of key food products and utilities; shortages or interruptions in the delivery
of food and other products;
volatility in the market value
of derivatives; general macroeconomic factors, including unemployment and interest rates; disruptions in the financial markets; risk
of doing business with franchisees and vendors in foreign markets; failure to protect our service marks or other intellectual property; a possible impairment in the carrying value
of our goodwill or other intangible assets; a failure
of our internal controls over financial reporting or changes in accounting standards; and other factors and uncertainties discussed from
time to
time in reports filed by Darden with the Securities and Exchange Commission.
In the April 2016 version
of their paper entitled «
Volatility Managed Portfolios», Alan Moreira and Tyler Muir test the performance of a simple volatility timing approach that lowers (raises) exposure to risky assets when volatility of recent returns for those assets is relatively h
Volatility Managed Portfolios», Alan Moreira and Tyler Muir test the performance
of a simple
volatility timing approach that lowers (raises) exposure to risky assets when volatility of recent returns for those assets is relatively h
volatility timing approach that lowers (raises) exposure to risky assets when
volatility of recent returns for those assets is relatively h
volatility of recent returns for those assets is relatively
high (low).
The first quarter
of 2018 has seen many cryptocurrencies weather a period
of intense
volatility with an all -
time market cap
high of $ 814 billion being recorded in January.
This past month was one
of the most volatile months
of the past three years, as the CBOE Short - Term
Volatility Index (VXST) rose 48.2 % on October 9, and the CBOE Brazil ETF
Volatility Index (VXEWZ) hit its all -
time daily closing
high of 72.83 on October 20 (before the re-election
of Dilma Rousseff as President
of -LSB-...]
June 16, 2015 — Yesterday the CBOE
Volatility Index ® (VIX ®) rose to its monthly closing
high of 15.39, and earlier today in the June 16 Extended Trading Hours (ETH) sessions, the estimated trading volumes during ETH were 30,920 for VIX futures (the
high for the month), and 6,984 for VIX options (the all -
time record
high).
Oct. 20, 2014 — Today's closing price was an all -
time daily closing
high of 72.83 for the CBOE Brazil ETF
Volatility Index (VXEWZ), which reflects the implied volatility of th
Volatility Index (VXEWZ), which reflects the implied
volatility of th
volatility of the EWZ ETF.
This long - lasting expansion with continued earnings growth can support rising stock prices over
time, even with the possibility
of higher volatility in 2018.
For the most part, lump sum investing outperformed dollar cost averaging two out
of every three
times, «even when results are adjusted for the
higher volatility of a stock / bond portfolio versus cash investments.»
In recent
times Venezuela as a sovereign country has been involved in sociopolitical problems and with a
high volatility in its prices
of raw material exports such as oil, because
of the low prices...
Investors who have a longer
time horizon and are willing to embrace more risk or
volatility in their portfolio in exchange for the possibility
of a
higher return would select a fund with a
higher equity holding — say LS80 or even LS100.
We mention in the book that
timing the lower
volatility bonds does not make a lot
of difference (
higher vol bonds like corporates, emerging, and junk work well however).
What the chart above shows is that the fund has historically demonstrated a greater likelihood
of dodging the dramatic swings the equity market has experienced in
times of uncommonly
high volatility.
Problem is, it's hard to invest when
volatility is this
high, so you can either wait until things calm down, or you can work into positions over a long period
of time.
To illustrate this, we'll compare some summary statistics about the S&P over
time as compared to during periods
of high excess
volatility.
At the same
time, in an apparent effort to quell
volatility and get banks to hold money longer, it shifted its primary lending to the weekly rate from its overnight rate
of 7.75 %, which it raised even
higher.
The MSCI ACWI closed at a record
high 61
times, and 30 - day realized
volatility of the S&P 500 Index hit its lowest level since the early 1960s.
They have to work out what to do about disillusioned Liberal Democrat voters at the same
time, as well as keeping up with the
high volatility of floating voters.
History shows that
times of high market
volatility are good
times to be in growth investments such as dividend - paying stocks.
The MSCI ACWI closed at a record
high 61
times, and 30 - day realized
volatility of the S&P 500 Index hit its lowest level since the early 1960s.
Stock / equity funds — As you probably guessed, stock funds have basically the same risks and rewards as individual stocks —
high volatility, risk
of losing money, easy to buy and sell, good investment to beat inflation, and historically among the best returns, on average over
time.
That's the crux
of the problem Ayres and Nalebuff identify: you either have lots
of time and little money to take advantage
of the
higher returns on stocks, or you have lots
of money and little
time to ride out the
volatility of the equity market.
What we can see though is
higher volatility & bigger gains in good years for the all - value & small - cap tilted age - 25 target date portfolios, which fits with expectations
of them having
higher risks and returns over
time.
Global stock markets have had tremendous
volatility over that period
of time, but they are generally
higher than they were back then.
Apart from general market risk, security risk, the lack
of liquidity at
times and
higher volatility associated with mid caps stocks could affect the fund and its performance.
The problem is that the «power hours» are a relatively small
time frame
of high volatility during the North American session.
Of course, right now I have a few high weighted stocks that need to be pruned back, but given the current volatility of the market these days, that won't be happening any time soo
Of course, right now I have a few
high weighted stocks that need to be pruned back, but given the current
volatility of the market these days, that won't be happening any time soo
of the market these days, that won't be happening any
time soon.
Managed Futures can be a valuable part
of an overall asset allocation plan; their purpose is to add portfolio diversification, potentially reduce overall portfolio
volatility and potentially achieve
higher overall portfolio performance over
time when compared to traditional investment portfolios alone.
you may end up holding the LEAP across several
high volatility events (earnings, product or FDA announcements, etc), any one
of which could move the stock down dramatically; and, while the shares may recover eventually, the LEAP holder may run out
of time as the LEAP's expiration clock is always ticking
Each personalized client portfolio is developed from a set
of assets that we monitor closely and believe will provide
high value and low
volatility over
time.
In the April 2016 version
of their paper entitled «
Volatility Managed Portfolios», Alan Moreira and Tyler Muir test the performance of a simple volatility timing approach that lowers (raises) exposure to risky assets when volatility of recent returns for those assets is relatively h
Volatility Managed Portfolios», Alan Moreira and Tyler Muir test the performance
of a simple
volatility timing approach that lowers (raises) exposure to risky assets when volatility of recent returns for those assets is relatively h
volatility timing approach that lowers (raises) exposure to risky assets when
volatility of recent returns for those assets is relatively h
volatility of recent returns for those assets is relatively
high (low).
If there is large price movement within a short amount
of time then
volatility would be considered
high.
A study Barry Feldman and Dhruv Roy, cleraly shows the BXM Index (CBOE S&P 500 BuyWrite Index), a benchmark for an S&P 500 - based covered call strategy, had slightly
higher returns and significantly less
volatility than the S&P 500 over a
time period
of almost 16 years, despite the fact that covered calls have a truncated upside in the short term.