Welcome to the RLH Volatility Model

Our Proprietary Volatility Analytical Methodology Manages Risk and Has the Potential to Increase Portfolio Return
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Motion Defines Life

Where there is motion, there is life.  At absolute zero, all molecular activity ceases--no motion--death.

And, beyond that, each life has its own distinctive "signature" motion.  Whether it's Elvis swiveling his hips, bees "dancing" (did you know that's how bees "talk" to each other?), or The March of the Penguins (the 70-mile laborious trek across Antarctica the Emperor Penguins make annually, absent which that species would be extinct), the individuation and sustenance of each life means:
 
  • there must be motion, and

 

  • each individual life has its own, unique signature motion.
 
Now here's the nutty part: in a virtual sense of life, all these points about motion made above are characteristics of the individual "lives" of stocks too.
 
Ridiculous, you say?  Well, we'll agree it's a somewhat odd and fantastic notion, but we've been studying the motions (volatility) of hundreds of stocks for 15 years, and that is precisely what we have observed and learned.  Our methodology for doing this is entirely unique and proprietary.
 
Not only that--and here's the useful part--these signature motions of stocks (each stock's unique signature volatility) also bear important clues that can be critical in assessing risk and price behavior.

Why is volatility misunderstood and misused, and why is correctly understanding volatility and using it properly crucial to managing portfolio risk and enhancing the potential for greater return?
 
 
We began with an obsession about an oft-misused and misunderstood concept: stock market volatility.
 
This obsession began with an objection to using implied volatility as a proxy for real volatility among the "talking heads" often seen and heard discussing their notions about volatility on CNBC and elsewhere. 
 
At the time this obsession started, there was no intent to create a business or earn a profit, simply a desire to pursue a greater understanding of stock market behavior by looking at volatility in a new way to see if it could be useful.

 
Understanding stocks and stock markets isn't easy.


And nobody knows everything about all stocks and stock markets.  What counts is having a point of view and knowing how to put it to work.
 
Our specialty is volatility and how volatility relates to risk and price behavior.
 
It takes a bit of concentration and time, but you may want to read our detailed paper on this subject.  It's available to look at right here on our site.
 

 

  

 

 

 

 

 

 

 

 

 

 

 


 

Volatility defines the individual "lives" of stocks and their behavior.

 
 
 
 
 
 
 
 
The RLH Risk-Management Volatility Model
 
 
860.482.6673
 
 
Please leave a message for us on our contact page if you would like to learn more, or simply give us a call.