Advances in Economics, Management and Political Sciences

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Proceedings of the 7th International Conference on Economic Management and Green Development

Series Vol. 37 , 10 November 2023


Open Access | Article

Research on the Development Trend and Application of VIX Index

Muhao Hu * 1 , Gexuan Zhu 2 , Xinyu Wen 3
1 University of Minnesota
2 New York University
3 University of Waterloo

* Author to whom correspondence should be addressed.

Advances in Economics, Management and Political Sciences, Vol. 37, 42-54
Published 10 November 2023. © 2023 The Author(s). Published by EWA Publishing
This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
Citation Muhao Hu, Gexuan Zhu, Xinyu Wen. Research on the Development Trend and Application of VIX Index. AEMPS (2023) Vol. 37: 42-54. DOI: 10.54254/2754-1169/37/20231830.

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

References

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Data Availability

The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.

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Volume Title
Proceedings of the 7th International Conference on Economic Management and Green Development
ISBN (Print)
978-1-83558-095-0
ISBN (Online)
978-1-83558-096-7
Published Date
10 November 2023
Series
Advances in Economics, Management and Political Sciences
ISSN (Print)
2754-1169
ISSN (Online)
2754-1177
DOI
10.54254/2754-1169/37/20231830
Copyright
© 2023 The Author(s)
Open Access
This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited

Copyright © 2023 EWA Publishing. Unless Otherwise Stated