Credit Suisse Observes Tradeable Volatility Divergence

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…