RocketCap » Investing

Rocketcap IP Indexes, Year end 2011

admin — Mon, 02 Jan 2012 01:51:12 +0000

We introduced our RocketCap Intellectual Property Stock Index (RIPSI) in June 2011 and the RocketCap Intellectual Property Stock Index (RIPSI) for Design soon after. The RIPSID includes Wi-LAN, a firm that started trading on the NASDAQ in June 2011. Thus, the earliest we can include RIPSID in 3 June 11.

Here’s is the full plot of our indexes for IP along with the S&P500 (we are using weekly price data):

Gross ROIs for RIPSID vs RIPSI vs S&P 500 for 7 month period ending 12-30-2011

This chart shows the individual components of our IP Indexes:

RIPSID component gross returns: 7 months ending 12-30-11

Finally, we can look at the plots to get a feel for the actual cross-correlations:

Cross-Correlations of gross returns for 7 months ending 12-30-11

Unsurprisingly, RIPSI and RIPSID are highly correlated, but RIPSID and S&P 500 have low correlation. This means that RIPSID is a good candidate to diversify portfolios having large firms.

Cognitive Decline and Failure to Take Free Money

admin — Tue, 15 Feb 2011 22:12:23 +0000

Read the interview of Prof. David Laibson of Harvard’s Economics Department. He talks about how people literally and willfully fail to take free money and other behavioral misjudgments they make. He also discusses a really big problem for those over 70: half have various forms of dementia and other types of cognitive declines resulting in mismanagement of their money.

Consider yourself warned!

Cognitive decline and failure to take free money

The World’s Best Banks

admin — Tue, 22 Sep 2009 00:12:34 +0000

Global Finance Magazine has just published a study about global banks.

As the magazine says in the article:

In selecting this year’s winners, Global Finance’s editorial team considered objective and subjective factors. Objective criteria included growth in assets, profitability, geographic reach, strategic relationships, new business development and product innovation. Subjective criteria included the opinions of equity and credit-rating analysts, banking consultants and others in the industry, as well as corporate financial executives. The winners are not always the biggest banks but, rather, the best banks – those with the qualities that corporations should look for when choosing a ban

You can read the article and the winners here.