Macroeconomic Indicators
At Alpha Rho Technologies, we made our mission to simplify the complexities of the macroeconomic landscape. With hundreds of macroeconomic indicators that don't always align, many face confusion and challenges in their decision-making. To address this, our proprietary macroeconomic indicators are designed to offer a clear view of the different components of the macroeconomic environment.
Key Statistics
macroecomic variables
months of historical data
main indicators
sub indicators
Our Indicators
Our indicators scale from 0 to 1, representing the average percentile value of the subindicators at a given time. A higher value suggests that the category is reflecting conditions similar to those seen at economic cycle peaks. Conversely, lower values indicate conditions akin to economic cycle bottoms.
Indicator Description:
Select an indicator to see its description.
Frequently Asked Questions:
Can these indicators predict market downturns or booms?
While no indicator can guarantee predictions, our proprietary indicators aim to offer insights that can help investors anticipate potential market movements. By understanding the macroeconomic landscape through these unique lenses, one can be better prepared for various market scenarios.
How frequently are the indicators updated?
Our propietary indicators are updated on a monthly basis
Are these indicators point in time?
Yes, our indicators are structured as point-in-time (PIT) data. Having point-in-time data is crucial for ensuring the integrity and consistency of backtesting. By using PIT data, we accurately simulate past situations as they were experienced in real-time, without the influence of subsequent data revisions or events. This allows for a more genuine representation of historical conditions, ensuring that backtest results are reliable.
Where do we source our data?
We currently source our macroeconomic data from FRED (Federal Reserve Economic Data) and NASDAQ Data.
Are these indicators used by ART Algorithms?
Yes, our proprietary macroeconomic indicators play a pivotal role in shaping our investment strategies. By providing unique insights into the macroeconomic landscape, these indicators allow us to make more informed decisions, anticipate market movements, and construct portfolios that are both resilient and opportunistic. Their integration ensures that our investment approach is data-driven, leveraging the exclusive research and analytics that set our firm apart.
How are these proprietary indicators developed?
Our process includes:
- Import raw macroeconomic data from official information sources.
- Adjust the raw data for point in time (PIT) availability, to ensure backtesting rigurosity.
- Employ PIT standarization to the raw data points for consistency and uniformity.
- Identify valuable relationships between standarized raw variables to derive model variable values.
- Categorize these variables into specific groups or categories.
- Transform these variables into a point-in-time percentile value.
- Average these values to produce the indicators displayed.