Market Regime
Volatility Contraction on AAPL is rendered against the current asset snapshot: 1 month return 8.81% and 90 day volatility 23.71%.
The strategy context is a positive one-month return regime with a moderate volatility regime, aligned to the same fact-card values shown above.
Historical Pattern
The Volatility Contraction strategy examines how an asset behaves during specific market phase changes, such as a shift from a high-volatility to a low-volatility environment. Looking at the historical performance for AAPL, the 1-year return is 32.4829 percent. On a short-term basis, the 1-month return is 7.2995 percent, the 1-week return is 0.3071 percent, and the 1-day return is -0.8668 percent. This analysis isolates these types of market transitions to show specific pressure points and how parameterization responds to shifts in market volatility.
Workflow Pointer
Use this information to understand a potential vulnerability in the strategy's logic during a specific market phase change. This surface visualizes how the Volatility Contraction parameters align with historical market stress events and volatility shifts. Review these metrics to evaluate the strategy's sensitivity to market shocks and to understand how it behaves when transitioning between different volatility periods.