investors began to look at volatility from a different angle. It happened due to emergence of a market for new derivative …Traditionally volatility is viewed as a measure of variability, or risk, of an underlying asset. However recently … instruments - variance swaps. In this paper first we introduse the general idea of the volatility trading using variance swaps …

With the recent availability of high-frequency Financial data the long range dependence of volatility regained … researchers' interest and has lead to the consideration of long memory models for realized volatility. The long range diagnosis of … volatility, however, is usually stated for long sample periods, while for small sample sizes, such as e.g. one year, the …