Measure the uncertainty of the VIX Index with Entropy to apply to the SET50 Index.

Abstract

This article is the study on “Measure the uncertainty of the VIX Index with Entropy to apply to the SET50 Index”. The study objectives are as followed to measure how does the uncertainty of the VIX Index or Volatility Index behaviors can reflects the facts of fear in investors? and to find the relationship between the VIX Index and SET50 Index for make practical use in The Thai Stock Market, By using the Entropy Value (derived from the VIX Index) to interpret the facts of the data such as How does Investors’ fear can affect the stock market at the different times and apply it to predict the timing of investment for profit with buying and selling of the SET50 Index Market in Thailand. The result found that, Entropy Value can explain the facts of Investors’ fear and apply to find a signal to predict the timing of investment for profit with buying and selling of the SET50 Index Market. Lastly, Investors can receive The Portfolio like make a profitable in the both of normal trading and buying-selling options.