Overall market volatility is engaged in an interesting divergence pattern, a research piece from Credit Suisse observed yesterday, with market correlation overlaps that investors and traders might want to consider. It shows that volatility in correlated markets is reducing at an uneven pace and stock market volatility attribution is not primarily coming from interest rates. In the wake of the Fed’s no decision decision not to raise interest rates in September there will be market impact, observes the weekly market commentary from the bank’s Mandy Xu, an analyst on the equity derivatives team run by Edward Tom. As the S&P 500…
Credit Suisse Observes Tradeable Volatility Divergence
Mark Melin
Mark Melin is an alternative investment practitioner whose specialty is recognizing the impact of beta market environment on a technical trading strategy. A portfolio and industry consultant, wrote or edited three books including High Performance Managed Futures (Wiley 2010) and The Chicago Board of Trade’s Handbook of Futures and Options (McGraw-Hill 2008) and taught a course at Northwestern University's executive education program.