As a result of analyzing the current level of volatility index (VIX) with historical data, it was ad..

As a result of analyzing the current level of volatility index (VIX) with historical data, it was advised that if the stock market falls further, it should respond with additional buying.

According to the securities industry on the 9th, Yang Hyung-mo, a researcher at DS Investment & Securities, said, “We should respond probabilistically by buying if the stock market falls further,” based on the results of analyzing VIX and stock market data since 1990, adding, “Fear is a buying opportunity.”

DS Investment & Securities said the VIX is currently at 26.0, but this has not reached the level where the index soared in light of historical cases such as the global financial crisis.

“The median peak of the historical spike, which is more fear-mongering than this, was VIX 29.1,” he said. “More than half of all spikes form a high below VIX 30.”

“Currently, VIX 26.0 is an early stage that just exceeded the spike detection threshold, close to the historical median high (29.1), and if the index breaks above 28, the probability of reaching 30 increases to 77.3 percent,” he explained.

The bottom of the stock market for each scenario was also presented. The strategic buying section is 5070 (-9.2%), 4816 (-13.8%), and 4316 (-22.7%) in the 1st round based on the KOSPI. Standard & Poor’s (S&P) 500 has a first buy of 6382 (-5.3%), a second buy of 5975 (-11.3%) and a worst low of 5776 (-14.3%).

Finally, he said, “We have already experienced -12.65% (5059) during the day on March 4th. This level is the first buying section, and the second active weight expansion section when it reaches 4816, he said. “Fear is a buying opportunity.”