Market & Sector Risk Indicators
Great tool to help gauge the magnitude and direction of market or sector risk. Great
for sector rotation strategies.
SmartStops Risk Ratio (SRR): The percent of equities in the group that are in the
Elevated Risk State according to the SmartStop Aggressive Risk Signals on a given
day.
SmartStops Risk Barometer Index (SRBI): The current risk ratio in relation to its
average over the preceding 100 market days. An SRBI above 1 means the current risk
ratio is higher than its 100 day average. An SRBI below 1 means the current risk
ratio is lower than its 100 day average.
Learn More
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Market
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Current Risk Ratio
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Historic Risk Ratio
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Risk Direction &
Rate of Change
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SmartStops Risk Ratio (SRR)
% of equities in Above Normal Risk State
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Risk Ratio
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100
Day Risk Ratio Moving Average
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Sector
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Current Risk Ratio
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Historic Risk Ratio
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Risk Direction &
Rate of Change
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SmartStops Risk Ratio (SRR)
% of equities in Above Normal Risk State
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Risk Ratio
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100
Day Risk Ratio Moving Average
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What is the SmartStops Risk Barometer Index (SRBI)™?
The SmartStops Risk Barometer Index (SRBI)™ is a calculated number that helps
investors quickly identify the historical relative magnitude of risk represented
by a specific group of equities such as a market index or a particular sector.
Based on the SmartStops Aggressive Risk Signals, the SRBI is calculated by identifying
the percent of the equities in the selected group that is currently in an elevated
risk state and dividing that percentage by the average elevated risk state percentage
over the last 100 trading days.
By viewing the SRBI historical chart, you can follow the groups elevated risk percentage
and its 100 day average through time and easily identify risk level trends. Market
and Sector SRBIs can be helpful when choosing entry and exit points or when pursuing
a sector rotation strategy.
- An SRBI = 1 indicates that the current elevated risk percentage is the same as the 100 day average.
- An SRBI below 1 indicates that the current elevated risk percentage is below the 100 day average.
- An SRBI above 1 indicates that the current elevated risk percentage is above the 100 day average.
The SRBI is an additional market risk indicator that can be used in conjunction
with traditional risk indicators such as the Volatility Index (VIX).