VSTOXX vs FTSE 100
Live side-by-side comparison with current values, changes, and key statistics.
Why This Comparison Matters
VSTOXX tracks Eurozone volatility, so UK-specific stress may not appear in VSTOXX. When FTSE weakens without VSTOXX response, UK-specific issues dominate. When VSTOXX rises with FTSE weakness, broader European risk-off includes UK. The ratio reveals UK-Europe correlation in stress.
Cross-Asset Analysis
To orient the reader: VSTOXX represents VSTOXX, implied volatility on Euro Stoxx 50 options and FTSE 100 represents FTSE 100 index, the UK large-cap equity benchmark, which is why this comparison sits in the cross asset pair category on Convex. Cross-asset pairs like VSTOXX versus FTSE 100 reveal the macro variables that cut across asset classes: liquidity, inflation, real rates, and risk appetite. Policy-driven transitions introduce fast repricing into the VSTOXX-FTSE 100 relationship because the two markets adjust to policy guidance on different timescales.
The bridge between VSTOXX and FTSE 100 runs through shared macro drivers, and isolating the spread decomposes common factors from idiosyncratic noise. Cross-asset flows trail macro regime changes with characteristic lags, which is why spreads like VSTOXX-FTSE 100 often precede coincident indicators. Watching VSTOXX alongside FTSE 100 provides insight into how macro factors flow across different parts of the global market structure.
Name-specific shocks in either VSTOXX or FTSE 100 produce spread moves disconnected from the underlying macro story. Correlation trading desks quote options on the VSTOXX-FTSE 100 spread once the base relationship has been quantified across adequate regimes.
90-Day Statistics
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Frequently Asked Questions
What is the relationship between VSTOXX and FTSE 100?+
VSTOXX and FTSE 100 are connected through shared macro drivers across asset classes. When the dominant macro driver shifts, both respond, though with different sensitivities and at different speeds. The spread between VSTOXX and FTSE 100 captures the specific macro signal that flows through this relationship.
When does VSTOXX typically lead FTSE 100?+
VSTOXX tends to lead FTSE 100 during macro regime changes, where the more liquid asset moves first. In those periods, moves in VSTOXX precede corresponding moves in FTSE 100 by days to weeks, depending on the transmission channel and the depth of each market.
How are VSTOXX and FTSE 100 historically correlated?+
Long-run correlation between VSTOXX and FTSE 100 varies by regime. Cross-asset correlations vary by regime, tending to tighten in stress and loosen during normal conditions. The correlation is not stable: it shifts with macro conditions, and the periods when it breaks down are often the most informative moments in the VSTOXX-FTSE 100 relationship.
What macro conditions drive divergence between VSTOXX and FTSE 100?+
Divergence between VSTOXX and FTSE 100 typically arises from idiosyncratic shocks in one asset, policy interventions, or structural shifts in demand. When one asset's idiosyncratic drivers dominate, the spread moves in ways that the common macro story does not predict, which is usually a signal to look more carefully at the specific drivers at work in VSTOXX or FTSE 100.
Is VSTOXX a hedge for FTSE 100?+
Cross-asset hedges between VSTOXX and FTSE 100 work when the macro drivers of the two assets are sufficiently decorrelated, which depends on the regime and therefore needs to be reviewed as conditions change. Effective hedging requires matching the hedge to the specific risk being protected, and the VSTOXX-FTSE 100 pair is best stress-tested under scenarios the investor most worries about before being sized into a real portfolio.
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Data sourced from FRED, CoinGecko, CBOE, and other providers. This page is for informational purposes only and does not constitute financial advice. Past performance does not guarantee future results.