In the second part of our series on the impact volatility has on structured products, Benedict Peeters, founder and CEO of Finvex Group, the independent Belgian consulting firm which provides specific financial services to investment managers, financial advisers, banks, insurers and research houses, talks about clock patterns, fat tails and cones.
“Finvex works on reducing volatility in portfolio’s and indices. We are very much focused on volatility analysis but also on extreme risk. Because volatility is a measure of the so called normally distributed risk. If you look at volatility alone, I am speaking about historical and accurate estimated volatility, then volatility is a measure which takes into account that the distribution of prices of shares have a normal Gaussian distribution. A share which is very volatile has a cl