When being introduced to our Social Anomaly Scores produced by our HIVE-MIND system, we are often asked if it is correlated to the VIX?
Well, the answer is no, it's not. It's a totally new way of anticipating volatility.
So, given the predictive connection of the HIVE-BOT SAS to an asset’s volatility, we conducted a correlation test on the HIVE-BOT’s $SPY SAS and the VIX. We have found that the HIVE-BOT’s $SPY SAS is orthogonal to the $VIX curve. This opens up myriad opportunities for a wide variety of trading strategies to simultaneously improve alpha and mitigate risk.
The HIVE-BOT’s SAS has major implications for trading and managing volatility. It can be used to easily improve the overall returns, Sharpe Ratio and to minimize max drawn-downs in a variety of trading scenarios.
So, to answer our original question posed in the title: “Is the HIVE-BOT SAS correlated to the VIX?” the answer is a resounding, no... as you'll see in the following image below:
"As the correlation test reveals, the HIVE-BOT’s SAS is orthogonal to the VIX curve."
So, in summary, if you're looking for another way to anticipate which way the market's about to move on you, just hit up our Sales team for some more information here
Or, if you're interested in reading the full Research Note, please visit this link here