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Market & Sector Risk Indicators
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SmartStops Risk Ratio (SRR)™ & SmartStops Risk Barometer Index (SRBI)™
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Learn More
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The Risk Ratio indicates the magnitude of risk. The SRBI indicates the rate and
direction of change of risk.
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SRBI =
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Current Percent In Above Normal Risk State
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SRBI > 1 = Risk above the 100 day average
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100 Day Average In Above Normal Risk State
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SRBI < 1 = Risk below the 100 day average
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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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Market
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
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.
The SRBI is calculated by identifying the percent of the equities in the selected
group that is currently in an above normal risk state, and dividing that percentage
by the average above normal risk state percentage for that group over the last 100
trading days. The SRBI is derived using the SmartStops Short Term risk signals.
By viewing the SRBI historical component chart, you can follow the groups above
normal risk percentage and the 100 day average history through time and easily identify
the current risk trend. Market and Sector SRBIs can be helpful when choosing entry
and exit points or when pursuing a sector rotation strategy.
- An SRBI = 1 infers that the current “above normal risk percentage” is the same
as the 100 day average.
- An SRBI below 1 infers that the current above normal risk percentage is below
the 100 day average.
- An SRBI above 1 infers that the current above normal 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).
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