2 ms·
It is a well known empirical fact that volatility is mean reverting.
by richrichie 3y ago
It is a well known empirical fact that volatility is mean reverting.
- slt2021 3y agothe hardest thing obviously is to time the moment when it will start mean reverting. there is possibility you can take trading position with expectation of vol reverting to the mean, and vol will keep increasing (what happened to tesla and gamestop short sellers) and vice versa