Cboe Volatility Index Index Performance
| VIX Index | 32.71 3.06 10.32% |
The entity shows a Beta (market volatility) of 0.0, which signifies not very significant fluctuations relative to the market. the returns on MARKET and CBOE Volatility are completely uncorrelated.
CBOE Volatility Relative Risk vs. Return Landscape
If you would invest 1,506 in CBOE Volatility Index on January 21, 2025 and sell it today you would earn a total of 1,765 from holding CBOE Volatility Index or generate 117.2% return on investment over 90 days. CBOE Volatility Index is generating 1.8614% of daily returns and assumes 12.1214% volatility on return distribution over the 90 days horizon. Simply put, majority of traded equity instruments are less risky than CBOE on the basis of their historical return distribution, and most equity instruments are likely to generate higher returns than the company over the next 90 trading days. Expected Return |
| Risk |
CBOE Volatility Market Risk Analysis
Today, many novice investors tend to focus exclusively on investment returns with little concern for CBOE Volatility's investment risk. Standard deviation is the most common way to measure market volatility of indexs, such as CBOE Volatility Index, and traders can use it to determine the average amount a CBOE Volatility's price has deviated from the expected return over a period of time. It is calculated by determining the expected price for the established period and then subtracting this figure from each price point. The differences are then squared, summed, and averaged to produce the variance.
Sharpe Ratio = 0.1536
| Best Portfolio | Best Equity | |||
| Good Returns | ||||
| Average Returns | VIX | |||
| Small Returns | ||||
| Cash | Small Risk | Average Risk | High Risk | Huge Risk |
| Negative Returns |
Estimated Market Risk
| 12.12 actual daily | 96 96% of assets are less volatile |
Expected Return
| 1.86 actual daily | 37 63% of assets have higher returns |
Risk-Adjusted Return
| 0.15 actual daily | 12 88% of assets perform better |
Based on monthly moving average CBOE Volatility is performing at about 12% of its full potential. If added to a well diversified portfolio the total return can be enhanced and market risk can be reduced. You can increase risk-adjusted return of CBOE Volatility by adding it to a well-diversified portfolio.