What are Onalytica Indexes?

Onalytica Indexes, from Onalytica, belong to a group of “alternative indices” which capture the trends in the collective psychology of the market participants or “voice of the market”.

The Indexes are clearly not a replacement for traditional stock market indexes, rather they can be used to understand the trends in the collective narrative on economic and business issues.

Onalytica Indexes also have applications for portfolio managers and traders who are seeking additional insight on how economic issues are being perceived by the population in general and by those with more influence in the debate.

The data for the Indexes is sourced from a very large daily poll (often 20k+) of online blogs/news that can be browsed – similar to what search engines find and index. The Onalytica Indexes then track the percentage of stories, on a particular topic (e.g. “US Economy”), which mention a set of words or phrases (e.g. “rising prices”, “more expensive”, “inflation”, etc.).

For example, the Inflation-Index US Economy tracks mentions of words and issues commonly associated with inflationary pressures in the economy (“inflation”, “rising prices”, “more expensive”, etc.) in the context of US Economy. Similarly, the Recession-Index UK Economy focuses on the frequency of words and phrases associated with recession and/or negative economic growth on the topic of UK Economy.

The Indexes are published hourly, daily, weekly, monthly and quarterly.

Each index is published in two versions: Equal-Weighted, where all sources weigh equal in the calculation, and Influence-Weighted, where sources weigh in with the calculated influence (impact-factor) on the issue in focus.

Have a play with Onalytica Indexes here.