The Volatility In The Application Of XX Limited In Investment Risk Management

With the development of China's economic,China stock market also grow rapidly.Meanwhile,as the China's economic is still in the transitional phase,the stock market is playing a critical role in supporting economic development and expanding the scale of direct finance for enterprises.Under such circumstance,all interested parties pay great attention to the stock market development progress.China private equity fund has also grown rapidly in recent years.In the middle of 2015 and after,the violent fluctuations bring a huge challenge for private equity funds to manage risks.The fierce volatility may jeopardize the reputation and wealth with the drop of net product,if a private equity fund hasn't establish a sound risk management system.One product of my company's also suffered capital loss.Therefore,the paper aims to analyzing the condition of the application of volatility in risk management system of my company to verify the feasibility and effectiveness of the Shanghai Composite Index to measure risks.In the article,firstly we introduce some basic information about the company.Secondly,risk,risk measurement,risk management,volatility and implied volatility will be introduced and analyzed.Thirdly,we explain Shanghai Composite Index,and try to build the volatility calculation model basis on the index.Then we analyze HengSheng Well-Chosen No.2,an active management product of my company,and point out three problems about the volatility in the application of the company in investment risk management.We realize risks slowly and can't have a clear figure of appropriate stock positions by using the volatility index.We also are not able to forecast risk when the index value is at extremely low level.In the view of the problems above,we hope to improve the hysteresis by change in the period of calculating the volatility index and the forecast of index futures.Then according to the expect return and the volatility value ratio,we make volatility values to match the corresponding position intervals.We can better manage risk.Based on the above two,it is helpful for the company to more quickly realize and deal with risk.Meanwhile,the company has an implementation of the standard in the process of controlling risk.