Stock markets are plummeting as the Corona virus has turned into a global pandemic. During the short periods of recovery one can hear those stock market reporters on TV talking about a tennis ball effect. The idea is that what goes down has to come up again and vice versa. So should you wait for … Continue reading Stock market crisis: is there a tennis ball effect?
If you own stocks of a company, how big is the risk to lose at least 5 percent of your money tomorrow? To answer that question, you need to know the variance of that stock. The problem with stock market variances is that they change a lot over time. They are very high in times … Continue reading Something is wrong with realized volatility