Rocketcap IP Indexes, Year end 2011

Posted on January 1st, 2012 by admin in Intellectual Property, Investing, Market Indexes

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.

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