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Forums Updates Important Updates Correlation between India VIX and Nifty

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      Nitin Bhatia
      Keymaster

        Typically, there is a inverse correlation between India VIX and Nifty. The India VIX represents the fear or risk factor in the stock market. Therefore, an increase in India VIX means risk is increase therefore market falls.

        If the India VIX is decreasing then it means that market should go up due to low risk and fear. However, recently i observed that correlation coefficient between India VIX and Nifty is just -0.18. In layman terms, there is no correlation between the two. This is the reason you must have observed that stock market was moving up with the increase in the India VIX.

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