Industry Momentum Service
What is the service?
A proprietary, quantitative model - the Industry
Momentum Model - analyzes each group and sector's price behavior during the past year and forecasts
their expected
active return.
What makes it different?
- Pure price action measure designed specifically for groups and sectors
- Does not rely on macroeconomic forecasts
- Combines well with stock selection fundamentals
- Designed for institutional holding periods
Who should use it?
Portfolio managers and analysts interested in an objective, quantitative
forecast of industry group and economic sector performance
What do I receive?
Weekly rankings (1 to 10, see the graph below) from the
Industry Momentum Model for the 100+ Standard & Poors industry groups and 10 economic sectors.
The rankings characterize each group or sector's expected active return over
the next 12 months.
What do the rankings mean?
How do I get the rankings?
- E-mail delivery of Industry Momentum report
- FTP access to data file
- Access to Industry Momentum report from the Columbine web site
How has it performed?
How is it computed?
The Industry Momentum Model analyzes the
weekly returns from every industry group and economic sector over the past
year. Applying a proprietary algorithm to these return series, the Industry
Momentum Model measures the price momentum exhibited by each group and
sector and assigns rankings from 1 (best) to 10 (worst).
How do I use it?
In general, overweight your portfolio's exposure to industry
groups or economic sectors ranked 1 on the Industry Momentum Model. These
groups/sectors are likely to outperform the market over the next year.
Likewise, underweight those ranked 10; they tend to underperform. Intermediate
rankings (2-9) also have utility, but the extreme rankings are the most
predictive.
How can it help me?
- Identify groups or sectors likely to outperform
- Avoid potential problem groups or sectors
- Enhance stock selection process
- Dodge potential "torpedo" stocks
- Input into proprietary stock selection process
Click here for more information on the Columbine
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