Volatility Forecasting Based on Machine Learning: Returns up to 20.47% in 3 Months

Volatility Forecasting

Volatility Forecasting: This Volatility forecast is designed for investors and analysts who need predictions of the implied volatility for a basket of put and call options related to a specific index. It includes 8 volatility indices with bullish and bearish signals and indicates the best Volatility Index to trade:

  • Volatility indices for the long position
  • Volatility indices for the short position

Volatility Forecast
Package Name: Volatility Forecast
Recommended Positions: Long
Forecast Length: 3 Months (10/17/21 – 1/17/22)
I Know First Average: 7.56%
Volatility Forecasting
Volatility Forecasting chart

3 out of 3 stock prices in this forecast for the Volatility Forecast Package moved as predicted by the algorithm. The top performing prediction from this package was ^VXD with a return of 20.47%. ^GDAX and ^VXO also performed well for this time horizon with returns of 2.22% and 0.0%, respectively. The Volatility Forecast package had an overall average return of 7.56%, providing investors with a premium of 3.28% over the S&P 500’s return of 4.28%.

Algorithmic traders utilize these daily forecasts by the I Know First market prediction system as a tool to enhance portfolio performance, verify their own analysis and act on market opportunities faster. This forecast was sent to current I Know First subscribers.

How to interpret this diagram

Algorithmic Stock Forecast: The table on the left is a stock forecast produced by I Know First’s algorithm. Each day, subscribers receive forecasts for six different time horizons. Note that the top 3 stocks in the 1-month forecast may be different than those in the 1-year forecast. In the included table, only the relevant stocks have been included. The boxes are arranged according to their respective signal and predictability values (see below for detailed definitions). A green box represents a positive forecast, suggesting a long position, while a red represents a negative forecast, suggesting a short position.

Please note-for trading decisions use the most recent forecast. Get today’s forecast and Top stock picks.