Reinsurance industry

Monitor and predict the growth prospects and potential risks of the Reinsurance industry by examining the financial and macroeconomic factors affecting it and the latest Reinsurance news tracked by MacroVar. Sign Up Free to get notified instantly on the latest Reinsurance updates and get full access to MacroVar advanced analytics of Global Financial Markets, Economies and Financial Risk.

Click to explore the factors and the financial models used by MacroVar to analyze the Reinsurance industry trend, growth prospects and risks.

Reinsurance industry Markets

Market Symbol Last Mom Trend Exh RSI 1D% 1W% 1M% 1Y%
US Reinsurance industry US.REINSURANCE 350.32 1 0.75 1.29616 57.6142 0.57 1.83 1.82 -0.01162

Reinsurance industry News

Reinsurance industry Analysis

MacroVar monitors the performance, risk, trend and momentum of the Reinsurance industry by examining the stock and credit performance of major Reinsurance companies across the US, Europe, Eastern Europe and Asia Pacific. Reinsurance Stock performance is monitored by analyzing STOXX equity indices of major Reinsurance companies while Reinsurance credit performance is monitored by analyzing Markit iBoxx credit indices reflecting the performance of the Reinsurance high yield corporate bond market.

MacroVar also monitors fundamental indicators closely linked to the Reinsurance sector published monthly including analysis of sector specific PMI indicators, components of Manufacturing & Services PMI and Economic Sentiment Indicators analysis.

MacroVar also monitors other factors closely related to the Reinsurance industry like closely related financial markets or macroeconmic indicators.

MacroVar estimates the following signals:: Reinsurance momentum, Reinsurance trend, Reinsurance oscillator, Reinsurance RSI and Reinsurance returns.

Reinsurance industry Description

The subsector of Reinsurance includes companies engaged principally in reinsurance.

Reinsurance industry Momentum

Momentum is used to capture moves in shorter timeframes than trends. Momentum is the relative change occurring in markets. Relative change is different to a trend. A long-term trend can be up but the short-term momentum of a specific market can be 0. If a market moves down and then moves up and then moves back down the net relative change in price is 0. That means momentum is 0. A short-term positive momentum, with a long-term downtrend results in markets with no momentum.

MacroVar Reinsurance momentum signal ranges from -100 to +100. The Reinsurance momentum signal is derived as the mean value from 4 calculations for the Reinsurance . The timeframes monitored are the following: 1 Day (1 trading day), 1 Week (5 trading days), 1 Month (20 trading days), 3 Months (60 trading days)
For each timeframe, the following calculations are performed: 1. Reinsurance return is calculated for the specific timeframe and 2. if the return calculated is higher than 0, signal value output is 1 else signal value is -1. Reinsurance momentum signal is the aggregate of the the 4 values. A technical momentum rollover is identified when Reinsurance momentum signal moves from positive to negative value or vice-versa.

Reinsurance industry trend

Reinsurance trend signal ranges from -100 to +100. Reinsurance trend indicator is the mean value of the 8 calculations described below. The timeframes monitored are the following: 1-month (20 trading days), 3-months (60 trading days), 6-months (125 trading days), 1-year (250 trading days)
For each timeframe, the following calculations are performed: 1. Reinsurance Closing price vs Reinsurance moving average (MA) calculation: If Reinsurance is greater than Reinsurance MA value is +1, else -1, 2. Reinsurance Moving average slope calculation: if current Reinsurance moving average is higher than the previous MA, Reinsurance upward slope +1, else -1
Reinsurance trend model can be used as a trend strength indicator. Reinsurance trend strength values ranging between +75 and +100 or -75 and -100 show strong trend strength.
A technical trend rollover is identified when Reinsurance trend strength indicator moves from positive to negative value or vice-versa.

The most important trend indicator
The Reinsurance 52-week simple moving average and its slope are the most important indicators defining a market’s trend. Reinsurance is in an uptrend when Reinsurance price is higher than the 52-week moving average and the Reinsurance 52-week moving average has an upward slope. If fundamentals of the market have not changed and the moving average slope is still in uptrend, a price drop signifies a market correction and not a change of trend. Traders should watch oscillators like the Reinsurance oscillator and Reinsurance RSI to buy the dip and still follow the trend. The moving average slope turn signifies a change of trend.

Reinsurance industry oscillator

The Reinsurance oscillator estimated by MacroVar is the z-score of the currentReinsurance price versus Reinsurance 1-year simple moving average price. The formula for the Reinsurance oscillator is:
Reinsurance oscillator = (Current Price – 250 trading days Reinsurance simple moving average price) / (250 days Reinsurance price standard deviation)

Reinsurance oversold conditions
Reinsurance is oversold when it is subject to a persistent downward pressure due to extreme fund outflows. When the Reinsurance is oversold it is often due for a rebound. Values of the Reinsurance oscillator lower than -2.5 signify oversold conditions. It must be noted that the Reinsurance oscillator must be analyzed ibn conjunction with the rest ofReinsurance quantitative factors. Traders should pay less attention to overbought or oversold conditions during strong trends. They should pay close attention during counter trends and all combined with the Reinsurance RSI.
Reinsurance overbought conditions
Reinsurance is overbought when it is subject to a persistent upward pressure due to extreme fund inflows. When the Reinsurance is overbought it is often due for a correction. Values of the Reinsurance oscillator higher than +2.5 signify overbought conditions. It must be noted that the MacroVar oscillator must be compared to the rest of the Reinsurance quantitative factors. Traders should pay less attention to overbought or oversold conditions during strong trends. They should pay close attention during counter trends and all combined with the RSI.

Reinsurance RSI indicator

The RSI indicator measures the speed and change of price movements. The RSI indicator oscillates between 0 and 100. RSI is a useful indicator during normal trending market conditions when an asset price oscillates around its trend value. During big moves and strong trends however, like short squeezes or price spikes RSI and other oscillators don’t work.
During normal trend market conditions and when Reinsurance is in a downtrend RSI values between 50-60 signify overbought conditions before the downtrend is ready to resume. DuringReinsurance uptrend, RSI values of 40 to 50 signify oversold conditions before the uptrend is ready to resume. It is strongly not recommended to enter a position when the RSI is “overbought” and falling or vice versa.

Reinsurance industry returns

MacroVar calculates Reinsurance returns for the following timeframes: Daily, Weekly, Monthly, Yearly. The formula for calculating returns is:

Reinsurance returns = (Reinsurance Closing Price – Reinsurance Previous Price)/(Reinsurance Previous Price)

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