The Importance of Volatility in Portfolios

volatility was certainly very helpful to our space last year. I think one of the reasons that trend followers in particular were able to do so well is that they made money on relatively big positions early in the year and lost money on relatively small positions late in the year. That's because volatility increased significantly over the course of the summer. In effect volatility functioned like a take profit. You don't always see that, but the way volatility evolved over 2022 was very, very advantageous for trend following positions. It does go to show how the selection of volatility look back can be quite impactful in portfolios.

Transcript

Play full episode

Transcript

Episode notes

The AI-powered Podcast Player

Save insights by tapping your headphones, chat with episodes, discover the best highlights - and more!

Get the app