Macro#425tier 1live in productionNew

vvix regime long equity

cadence: Dailydata: lowlong onlyshort onlylong short
paper
2009
Source
Bollerslev, T., Tauchen, G., & Zhou, H. (2009). "Expected Stock Returns and Variance Risk Premia." Review of Financial Studies, 22(11), 4463-4492.
Read the paper โ†’

What it checks

When the vol-of-vol indicator (VVIX) spikes, the market is paying up for tail-risk insurance. Stocks usually rebound.

Mechanism

VVIX (the VIX of VIX) spike vs trailing 252d z-score signals vol-of-vol overpricing. Mean reverts via broad-equity drift up over 5-21d.

No production champion data for this family yet. Stats appear once the discovery pipeline promotes at least one strategy with this family tag, or once a multi-family blend that includes it earns a champion slot.

Signal rule

long SPY-like when VVIX 252d z >= +1.5 (inverted on long-vol ETFs); hold 5/10/21d

Data dependencies

  • fred_macro

    Worker data table, see services/worker schema.

  • daily_prices

    Adjusted-close OHLCV for every US-listed ticker; primary price feed.

Expected edge

Paper alpha
~3-5%/yr regime-timed
Paper Sharpe
~0.5
Paper window
T+1 to T+21d

BTZ 2009 RFS: variance-risk-premium predicts 1-3m equity returns; vol-of-vol higher-order version.

Example tickers where this is likely to fire

Illustrative only, the signal fires based on the live data, not a fixed list.

Related families

Explore vvix regime long equity on alphactor.ai

See which tickers this family is currently firing on, with live signals and rankings.

For informational and educational purposes only. Not financial advice. Learn more