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Research on the Development Trend and Application of VIX Index
- 1 University of Minnesota
- 2 New York University
- 3 University of Waterloo
* Author to whom correspondence should be addressed.
Abstract
This research paper focuses on providing a comprehensive understanding and introduction to the VIX index. The history of the VIX index, its applications, and related products are systematically analyzed. It also derives the formula for the VIX Index (the volatility index introduced by the CBOE) using the standard deviation formula. A detailed explanation includes example data using Excel to calculate the VIX index for a particular day, an analysis of the error scenarios generated, and ways to improve it. Studying the VIX index helps us better understand today's financial investment situation and analyze investments in a case with VIX index criteria.
Keywords
VIX index, fear index, VIX interpretation, VIX algorithm derivation, example of algorithm
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Cite this article
Hu,M.;Zhu,G.;Wen,X. (2023). Research on the Development Trend and Application of VIX Index. Advances in Economics, Management and Political Sciences,37,42-54.
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The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.
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