Are Long Volatility and Short Volatility mirror strategies?
Simon Aninat, Volatility expert and portfolio manager at Seeyond, provides insights on the differences between short and long volatility strategies.
- With static buying or selling strategies on volatility, returns can be opposite.
- As active managers, Seeyond dynamically adjusts its volatility exposure to exploit market patterns and opportunities of volatility markets
- Seeyond Long Volatility Strategy: Strategy structurally buying volatility that aims to generate return during volatile market conditions
- Seeyond Volatility Risk Premium Strategy: Strategy structurally selling volatility that aims to generate a long-term positive return by capturing the volatility risk premium.
Main risks of the Seeyond volatility strategies : capital loss risk, volatility-linked risk, risk related to the underlying asset, model-based risk.
This material is provided for informational purposes only and should not be construed as investment advice. The views and opinions expressed may change based on market and other conditions. There can be no assurance that developments will transpire as forecasted. Actual results may vary.
Seeyond is an affiliate of Natixis Investment Managers
Seeyond - Registered Office: 43 Avenue Pierre Mendes France – 75013 Paris – France
A limited company with capital of € 4 963 183 - Regulated by AMF under n° GP 17000034
Company Trade Registration (RCS) Number 525 192 720 Paris