Is there a correlation between AAPL's IV rank and the volatility of digital currencies?

3 answers

• Dec 16, 2021 · 3 years ago
  The Implied Volatility (IV) rank of AAPL and the volatility of digital currencies may not have a direct correlation. Digital currencies, such as Bitcoin and Ethereum, are influenced by various factors like market demand, adoption, regulatory news, and macroeconomic events. On the other hand, AAPL's IV rank is primarily influenced by the market's expectation of future price movements of the stock. While there might be instances where both digital currencies and AAPL experience volatility simultaneously, it is essential to analyze each asset's specific factors rather than assuming a direct correlation.
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• Dec 16, 2021 · 3 years ago
  When it comes to the volatility of digital currencies, factors like market sentiment, trading volume, and news events play a significant role. The IV rank of AAPL, on the other hand, is a measure of the option market's expectation of future price swings in the stock. While there might be instances where the IV rank of AAPL coincides with increased volatility in digital currencies, it is crucial to consider the unique dynamics of each market. Therefore, it is not accurate to assume a direct correlation between the IV rank of AAPL and the volatility of digital currencies.
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• Dec 16, 2021 · 3 years ago
  At BYDFi, we have observed that there can be some indirect relationship between the IV rank of AAPL and the volatility of digital currencies. When there is a significant change in AAPL's IV rank, it can sometimes lead to increased market uncertainty and risk aversion, which might indirectly impact the volatility of digital currencies. However, it is important to note that this relationship is not always consistent and can vary depending on various market factors. Therefore, it is crucial to analyze both AAPL's IV rank and digital currencies' volatility independently to make informed investment decisions.
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