Market Measures

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Implied Volatility: Gold vs. Equities

Market Measures

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Tom and Tony take a look at some compelling research regarding the spread of gold volatility and stock volatility.

We know that the implied volatility of both gold and stocks can fluctuate, but how have they compared to one another?

The research team took a look at the gold / stocks volatility spread (gold volatility - Stock volatility). From here, they were able to put some context to the numbers.

While gold volatility has historically been above stock volatility, the stock volatility has seen more fluctuations over the course of the data set.

They guys conclude by reminding us that volatility alone is not always a tradable metric, typically we compare apples to apples by using implied volatility rank.

Tune in for the full discussion!