RocketCap IP and CyberWar Stock Indexes

Posted on March 1st, 2013 by admin in Intellectual Property, Market Indexes

We show our stock indexes for IP and CyberWar, for the 12 month and 3 month periods ending on 28 FEB 13. While we naturally cannot know why they performed as they did, it’s interesting to note that in FEB 2013 there was very heavy coverage by the Mainstream Media of Chinese hacking into USA companies and government agencies. We say more about this event when we discuss the correlations below.

Here is the graph of gross returns for the 12-month period ending on 2-28-13:

Gross Returns 12 month

 

 

 

 

 

 

This return graph shows superior returns from the S&P 500 compared to our two indexes. However, for the previous three trailing months, RIPSI returns beat S&P 500, while RCWSI returns are lower.

Gross Returns 3 month

 

 

 

 

 

 

Here are the correlations of daily returns over the same time horizon:

Correlations

 

 

 

 

 

 

 

 

 

 

The correlations of both RIPSI and RCWSI with S&P 500 substantially increased over the last  3 months compared to the previous 12 months. Usually when groups of stocks become highly correlated, they all are reacting to the same information in the same way. We note again that in the last 3 months, Chinese cyber war activity was well publicized and this awareness may have spooked the markets similarly.

 

One Comment on “RocketCap IP and CyberWar Stock Indexes”

  1. Smitreski

    Everyone who tries to master Chinese needs plenty of encouragement. The HSK is a difficult exam. Because of the emphasis on the listening section. There are a lot of words to understand.

Leave a Reply

More News