Market Stress Test Signals Danger Ahead

One metric of market stress is the VX Ratio, defined as the ratio of the CBOE VVIX Index to the VIX Index. The former measures the volatility of the VIX, or the volatility of volatility. ¬†When markets are very quiet and the VIX Index is low the ratio moves to higher levels. During periods of … Continue reading Market Stress Test Signals Danger Ahead