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Volatility is one of the most important measures of market behavior. It reflects how much prices fluctuate over time, showing whether conditions are calm or tense. To track this, analysts often turn to volatility indexes , such as the VIX, which quantify how uncertain or confident the market feels at any given moment. These indices are not predictions of direction — they show the intensity of movement expected in the near term. Risk Warning: Volatility levels can rise or fall rapidly during global events, leading to unpredictable market reactions. Awareness of volatility helps understand risk, but cannot eliminate it. What Is a Volatility Index? A volatility index measures the market’s expectation of future price movement. The most well-known is the CBOE Volatility Index (VIX) , which tracks expected volatility in the S&P 500 over the next 30 days. When the VIX is high, it indicates greater uncertainty and larger expected price swings. When it’s low, it signals calmer condi...

Imagine two markets moving like dance partners — when one steps forward, the other steps back. In trading, this relationship is called correlation , and it explains how the price movement of one asset connects with another. Correlation helps traders and analysts understand the rhythm of global markets. Currencies, commodities, equities, and bonds rarely move in isolation. Instead, they respond to shared factors such as sentiment, interest rates, and risk perception. Understanding these links doesn’t reveal where markets will go next, but it helps explain why they move the way they do. The Story of Interconnected Markets In early trading hours, the price of crude oil begins to climb. Hours later, energy-sector stocks rise, followed by a stronger Canadian dollar. None of these moves is random — they are connected through fundamental and behavioral links. Oil affects the economy of producing countries. Energy stocks benefit when commodity prices rise. Currencies of resource ex...