{"id":49127,"date":"2015-07-13T08:25:25","date_gmt":"2015-07-13T12:25:25","guid":{"rendered":"http:\/\/www.hedgeco.net\/news\/?p=49127"},"modified":"2015-07-13T08:25:25","modified_gmt":"2015-07-13T12:25:25","slug":"can-the-vix-aid-in-choosing-strategies","status":"publish","type":"post","link":"https:\/\/hedgeco.net\/news\/07\/2015\/can-the-vix-aid-in-choosing-strategies.html","title":{"rendered":"Can The VIX Aid In Choosing Strategies?"},"content":{"rendered":"<p>New York (HedgeCo.Net) In a recent white paper produced by Chris Arthur, Senior Global Relationship Manager for Eaton Vance, Mr. Arthur suggested that financial advisors should use a mix of active and passive management strategies along with a smart beta approach in guiding their clients. He also offered this definition of smart beta:<\/p>\n<p>\u201cWe define it as a disciplined, rules-based strategy that focuses on adding value via portfolio construction techniques, with an emphasis on dynamic rebalancing and enhanced risk management.\u201d<\/p>\n<p>The paper isolated certain market circumstances where active management should perform well and the factors included:<br \/>\n\u2022\tThe level of interest rates.<br \/>\n\u2022\tMarket direction.<br \/>\n\u2022\tVolatility levels, as measured by the Chicago Board Options Exchange Market Volatility Index (VIX).<br \/>\n\u2022\tA breakdown of returns between market, sector-industry and company.<br \/>\n\u2022\tThe correlation among securities over 63-, 126- and 252-day periods.<br \/>\n\u2022\tThe cross-sectional volatility of the market.<\/p>\n<p>The information on the VIX was particularly interesting as the paper stated that \u201cwhen the three-year average of the VIX is either above 21 or below 16, active management has historically tended to outperform passive management.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"<p>New York (HedgeCo.Net) In a recent white paper produced by Chris Arthur, Senior Global Relationship Manager for Eaton Vance, Mr. Arthur suggested that financial advisors should use a mix of active and passive management strategies along with a smart beta [&hellip;]<\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[16033,16,3,16048],"tags":[],"class_list":["post-49127","post","type-post","status-publish","format-standard","hentry","category-hedge-fund-whitepaper","category-hedgeco-networks-press-releases","category-hedgeco-news","category-hedgecovest-news"],"_links":{"self":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/49127","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/comments?post=49127"}],"version-history":[{"count":1,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/49127\/revisions"}],"predecessor-version":[{"id":49128,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/49127\/revisions\/49128"}],"wp:attachment":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/media?parent=49127"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/categories?post=49127"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/tags?post=49127"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}