In this guide, we explore the concepts of Value at Risk (VaR) and Realized Volatility, both crucial for effective risk management. VaR helps estimate potential losses in a portfolio over a specific time frame, while Realized Volatility measures actual price fluctuations over time.
By using these metrics, traders and risk managers can better gauge market risks. Additionally, our Vol Control Model provides valuable insights into how volatility impacts VaR, helping inform trading strategies in different market conditions.
