15 December 2014
Investing in volatility: a new frontier for traditional portfolio diversification
The 3rd research paper from Seeyond, Natixis Asset Management’s investment division dedicated to structured and volatility management, is now available.
« Diversification is a cornerstone of investors' mindset. Recent developments in macro-economic policies, broadly masterminded by the Fed, had shed light on the limits of diversification across equities and bonds.
Our analysis shows that including equity volatility as an additional asset class can improve diversification by creating a source of risk mitigation. We show also that equity volatility allocation has to be actively managed in order to effectively improve diversification.»