On the Pertinence between the Historical Volatility and the Implied Volatility of the Warrant´s Price in China´s Stock Market

Is there any relationship between the historical volatility and the implied volatility in China´s warrant market? Based the price data of 14 warrants in China´s stock market, we found the answer is yes somewhat. It suggests that implied volatility can be taken as reference for the prediction of future fluctuation of stock prices. Despite the fact that implied volatility and historical volatility is relevant to each other, the correlation efficient is not as much as expected.