US Cloud Computing Sector Momentum Spillover (Hedera)
Tier 1

Measures the asset's sensitivity to the US Cloud Computing Index, captures the lead-lag relationship between the two assets.

Overview

Unravel

unravel

HBAR Price with US Cloud Computing Sector Momentum Spillover

Factor Plot

Unravel

unravel

▆ Very Low▆ Low▆ Moderate▆ High▆ Very High

Our Methodology

0.35

Overall

Measures the asset's sensitivity to the US Cloud Computing Index, captures the lead-lag relationship between the two assets.

Scatter plot - US Cloud Computing Sector Momentum Spillover and HBAR 30 and 90 Day Average Returns

Backtest - Strategy Performance

	Benchmark (Hedera)	Strategy
Max Drawdown	-92.8%	-64.1%
Volatility	133.5%	107.9%
Sharpe Ratio	0.98	1.22
CAGR	67.6%	128.3%
Alpha	0.00	0.35
Beta	1.00	0.74

To understand a predictive factors predictive power, we create a simple long-only strategy and simulate its past performance (with daily rebalancing):

100% Long when the predictive factor is close to 1, with a position size equivalent to the predictive factor value.
Flat when the predictive factor is close to 0, with a position size equivalent to the predictive factor value.

The strategy is rebalanced daily, on a continuous basis. There are 0.5% transaction costs applied on each position adjustment.

Reproduce the backtest using our API

Get started by validating the historical performance of this factor with our transparent code snippets.
Copy and paste the code snippets below into your Python environment or download the files below.