KOSPI Volatility Jumps to Wartime Levels as Correction Risk Grows

KOSPI volatility has risen sharply enough to be compared with wartime levels, according to a report by Hankyung. The article said warnings are emerging that, because the index has climbed quickly, any correction could also be large. The key point is not only the rise in the index, but the expansion in volatility. When stocks surge over a short period, investor sentiment can become overheated and even a small negative factor may deepen losses. Investors may therefore need to watch both the upward trend and the risk of wider swings and correction. Source: hankyung.com