Normal
I don't think it's correctly to call it a "lag" usually lag means time lag, and it's not like that with VIX. It's a perception of a risk. VIX will jump instantly as soon as there's the SP500 change or if there's any surprising news.It's more like a first derivative, showing expectations of investors about the rate of changes (of underlying assets like SP500) in the near future.The problem with future telling based on VIX. VIX is the average of crowd expectation about the future. The problem is - crowd is not good at predicting the future.
I don't think it's correctly to call it a "lag" usually lag means time lag, and it's not like that with VIX. It's a perception of a risk. VIX will jump instantly as soon as there's the SP500 change or if there's any surprising news.
It's more like a first derivative, showing expectations of investors about the rate of changes (of underlying assets like SP500) in the near future.
The problem with future telling based on VIX. VIX is the average of crowd expectation about the future. The problem is - crowd is not good at predicting the future.
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