Chris Dillow 

How volatility emerges

Chris Dillow

Chris Dillow
How volatility emerges

Two of the biggest puzzles in equity investing are that volatility varies considerably and unpredictably; and that there seems to be no trade-off between it and returns on the aggregate market: Alan Moreira and Tyler Muir, and Andrew Lo, have shown that it actually pays to buy equities when volatility is low not high, which is the opposite of what you’d expect if there were a trade-off between risk and return. These two puzzles might be related.

To continue reading, subscribe today

and enjoy unlimited access to the following:

  • Tips of the Week
  • Funds coverage
  • Weekly features on big investment themes
  • Trading ideas
  • Comprehensive companies coverage
  • Economic analysis
Subscribe
Subscribe to Investors Chronicle

Related topics

Subscribe today

Full access for just £3.37 a week:

• Tips and recommendations - to beat the market 
• Portfolio clinic & Mr Bearbull - build a well-planned portfolio 
• Expert tools - track and manage investments effortlessly
• Plus free delivery to your home or office

Subscribe Now