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Let's say I am looking to price AAPL 30 day volatility on a relative level. My first thought would be to take SPY vols and multiply it by AAPL's beta. But this leaves out the volatility caused by the sector, industry and other factors.

One of the issues is many of the factors are correlated so using simple linear regression is probably not the best bet.

How would i go about incorporating all of these factors into a model to forecast AAPL volatility?

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    $\begingroup$ I voted to close the question due to lack of clarity. What exactly is relative volatility. Also what would be the benefits of using SPY vol (presumably implied vol?) as opposed to using Apple's ivol directly? What volatility do you intend to forecast? If it's historical (realized) vol, using implied vol will be a poor choice. $\endgroup$
    – AKdemy
    Dec 6 '21 at 10:27
  • $\begingroup$ Hi @AKdemy I am trying to value AAPL implied volatility. In delta 1 space for example, i might use Coca Cola to help value Pepsi. What techniques are used in vol land to help find the fair value of implied volatility? $\endgroup$ Dec 7 '21 at 2:32