Hello all,
As many know it isn't easy to understand the VIX calculation and level meaning. I thought maybe someone could help on one question I have.
I was wondering if the relation to the market and index value movement is relevant to where it currently stands or is generally the same numerical movement regardless. Here is an example because I know that may sound confusing.
Say the market (S&P) moved up or down 2% on two different occasions. One time , just prior to the market move, the VIX was at 12. The other time the VIX was at 25. Would both moves the VIX generally be the similar in a % of where it previously stood or more so the same as an exact number (so the % move would be different in each scenario). To be clear I am not asking if the VIX will move the same % as the S&P.
I ask this because its not necessarily calculated like a normal index etc.
I hope I was clear and appreciate any input.
As many know it isn't easy to understand the VIX calculation and level meaning. I thought maybe someone could help on one question I have.
I was wondering if the relation to the market and index value movement is relevant to where it currently stands or is generally the same numerical movement regardless. Here is an example because I know that may sound confusing.
Say the market (S&P) moved up or down 2% on two different occasions. One time , just prior to the market move, the VIX was at 12. The other time the VIX was at 25. Would both moves the VIX generally be the similar in a % of where it previously stood or more so the same as an exact number (so the % move would be different in each scenario). To be clear I am not asking if the VIX will move the same % as the S&P.
I ask this because its not necessarily calculated like a normal index etc.
I hope I was clear and appreciate any input.
