Rocketcap IP Indexes, Year end 2011
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):
This chart shows the individual components of our IP Indexes:
Finally, we can look at the plots to get a feel for the actual cross-correlations:
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.