Correlation Between The VIX Index and The U.S. Dollar Index

Guest contribution provided by Forex Traders As the global economy continues to emerge from the worldwide economic debacle of the last two years, investors have increasingly turned to risky assets in 2011.  One could well argue that 2008, 2009, and 2010 were three of the most volatile years in the history of financial markets.  In the forex market, we saw the most commonly traded currency …

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Asset Correlation

Dan Haugh has written an interesting article in the CBOE’s “What’s On Our Minds” blog on asset correlation.   I think the traditional allocation strategies that attempt to lower volatility in a portfolio and reduce risk are showing serious signs of old age.  Technology trends (specifically ETFs / ETNs) are changing the way investors can invest, and traditional difficulties ( like the ability to directly …

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Review of StreetSmart Edge

Review Streetsmart Edge (SSE) can be launched/downloaded from the  Schwab website.  Schwab has made StreetSmart Edge available to all account holders.  A call to their helpline (800-435-9050) is required to set it up.   If you want to run SSE on an underpowered computer, are having performance problems, or want to run on a Mac check out the cloud version of SSE, see this post for …

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XIV sets a new volume record

XIV, VelocityShares’ daily inverse volatility fund traded over 660 thousand shares Monday, surpassing its previous record of almost 550 thousand set on March 16th.   It is showing an interesting volume pattern, with most days having under 100 thousand shares trading, and then surging when the market has big drops.  Look at the difference between Friday’s volume and Monday’s:   . .. . . . …

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The CBOE introduces options on its gold volatility index: GVZ

The CBOE broadened our choice of volatility investments a little bit today when it introduced options on its gold volatility index GVZ.     With GVZ, the CBOE has applied the same methodology that it uses for the VIX index,except it is based on the gold ETF: GLD,  rather than SPX, the S&P 500 index. The GVZ index behavior is similar to the VIX index. …

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