VIX:VIX3M Ratio

The VIX/VIX3M Ratio indicator compares the short-term (1-month) volatility index (VIX) to the medium-term (3-month) volatility index (VIX3M). This ratio provides insights into the market's volatility expectations across different time horizons.

Key Interpretations:

• Ratio > 1: Short-term volatility expectations are higher than 3-month expectations
  
• Ratio = 1: Short-term and medium-term volatility expectations are aligned
  
• Ratio < 1: Medium-term volatility expectations are higher than short-term expectations
  

Potential Trading Insights:

• A rising ratio may indicate increasing near-term market uncertainty
  
• Significant deviations from 1.0 can signal potential market stress or changing risk perceptions
  
• Traders use this to gauge the term structure of market volatility