We study whether investors' active information acquisition, measured by search volume in Google (SVI), affects the dynamics of currency prices. Significantly correlated with trading activities of major players, SVI has a strong effect on FX market volatility beyond the volatility of...

This paper explores the profitability of simple short-term cross-sectional trading strategies based on the implied volatility index (VIX), often referred to as an “investor fear gauge” in the stock market. These strategies involve holding sentiment-prone stocks when VIX is low and...