Volatility Prediction Based on Data Mining: Returns up to 40.45% in 3 Days
Volatility Prediction
This Volatility prediction 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
Package Name: Volatility Forecast
Recommended Positions: Long
Forecast Length: 3 Days (1/24/2020 – 1/27/2020)
I Know First Average: 19.87%
This Volatility Forecast Package forecast had correctly predicted 8 out of 10 stock movements. The highest trade return came from ^VIX, at 40.45%. Additional high returns came from ^VXO and ^VXN, at 40.38% and 32.22% respectively. The Volatility Forecast package had an overall average return of 19.87%, providing investors with a premium of 22.33% over the S&P 500’s return of -2.46%.
The Volatility Index, or VIX, is an index created by the Chicago Board Options Exchange (CBOE), which shows the market’s expectation of 30-day volatility. It is constructed using the implied volatilities on S&P 500 index options. This volatility is meant to be forward looking, is calculated from both calls and puts, and is a widely used measure of market risk.
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 10 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.