[caption id="attachment_2933" align="aligncenter" width="300" caption="Correlation between interest rates and volatility, part 3"][/caption]We continue the speech on the relationship of the difference between the interest rates and the volatility, than it is not much difficult one to explain. Naturally, the difference of which we are speaking is a general measure of the difference between the weighted average of the interest rates of the developed nations and that one of the populations in via of development.

If there are of the low interest rates in a group of nations, this is not sufficient in order to create volatility, for the simple reason that a low risk in the developed

countries does not translate in a lowland volatility in the forex, less than it is not coupled to a low risk of investment, measured in terms of rates development of the nation.

We go to make an example in order to clear this concept. We consider of the investor who take on loan, to of the interest rates many lows, the Japanese currency and invests in raw materials in Russia, where the interest rates more are elevated. Even if the perception of the risk in Japan is insufficient because of the force of base of the economy, elevated the interest rates of Russia show that the investments in the country have a profile of unfavorable risk. From the moment in which there are these bilateral relations like come here determined the perception of the risk and the volatility.

Also in this case we have seen as there is effectively correlation between the interest rates and the volatility of the markets. It is a thing that therefore effectively must take in consideration in order to make so that our investments consider really all the variable ones. In the next article we will go to see in that way is possible, for the investor, to anticipate the volatility, what that is equally important for knowing like being able to react to of the courses, also sometimes unexpected, of the market.