Advanced Volatility Trading Strategies Gain Traction Among Hedge Funds
Volatility is emerging as a standalone asset class, with sophisticated market participants like hedge funds actively trading its fluctuations independent of underlying price movements. The distinction between implied and realized volatility remains a critical focus, as options-derived expectations consistently exceed actual price swings.
This paradigm shift reflects growing institutional recognition of volatility's strategic value. Leading funds now allocate dedicated portfolio exposure to volatility, treating it not merely as a risk metric but as a source of alpha generation.