Specialty Finance industry
Monitor and predict the growth prospects and potential risks of the Specialty Finance industry by examining the financial and macroeconomic factors affecting it and the latest Specialty Finance news tracked by MacroVar. Sign Up Free to get notified instantly on the latest Specialty Finance 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 Specialty Finance industry trend, growth prospects and risks.
Specialty Finance industry Markets
Specialty Finance industry News
Specialty Finance industry Analysis
MacroVar monitors the performance, risk, trend and momentum of the Specialty Finance industry by examining the stock and credit performance of major Specialty Finance companies across the US, Europe, Eastern Europe and Asia Pacific. Specialty Finance Stock performance is monitored by analyzing STOXX equity indices of major Specialty Finance companies while Specialty Finance credit performance is monitored by analyzing Markit iBoxx credit indices reflecting the performance of the Specialty Finance high yield corporate bond market.
MacroVar also monitors fundamental indicators closely linked to the Specialty Finance 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 Specialty Finance industry like closely related financial markets or macroeconmic indicators.
MacroVar estimates the following signals:: Specialty Finance momentum, Specialty Finance trend, Specialty Finance oscillator, Specialty Finance RSI and Specialty Finance returns.
Specialty Finance industry Description
The subsector of Specialty Finance includes companies engaged in financial activities not specified elsewhere. Includes companies not classified under Equity Investment Instruments or Nonequity Investment Instruments engaged primarily in owning stakes in a diversified range of companies.
Specialty Finance industry MomentumMomentum 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 Specialty Finance momentum signal ranges from -100 to +100. The Specialty Finance momentum signal is derived as the mean value from 4 calculations for the Specialty Finance . 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. Specialty Finance 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. Specialty Finance momentum signal is the aggregate of the the 4 values. A technical momentum rollover is identified when Specialty Finance momentum signal moves from positive to negative value or vice-versa.
Specialty Finance industry trendSpecialty Finance trend signal ranges from -100 to +100. Specialty Finance 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. Specialty Finance Closing price vs Specialty Finance moving average (MA) calculation: If Specialty Finance is greater than Specialty Finance MA value is +1, else -1, 2. Specialty Finance Moving average slope calculation: if current Specialty Finance moving average is higher than the previous MA, Specialty Finance upward slope +1, else -1
Specialty Finance trend model can be used as a trend strength indicator. Specialty Finance trend strength values ranging between +75 and +100 or -75 and -100 show strong trend strength.
A technical trend rollover is identified when Specialty Finance trend strength indicator moves from positive to negative value or vice-versa.
The most important trend indicator
The Specialty Finance 52-week simple moving average and its slope are the most important indicators defining a market’s trend. Specialty Finance is in an uptrend when Specialty Finance price is higher than the 52-week moving average and the Specialty Finance 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 Specialty Finance oscillator and Specialty Finance RSI to buy the dip and still follow the trend. The moving average slope turn signifies a change of trend.
Specialty Finance industry oscillatorThe Specialty Finance oscillator estimated by MacroVar is the z-score of the currentSpecialty Finance price versus Specialty Finance 1-year simple moving average price. The formula for the Specialty Finance oscillator is:
Specialty Finance oscillator = (Current Price – 250 trading days Specialty Finance simple moving average price) / (250 days Specialty Finance price standard deviation)
Specialty Finance oversold conditions
Specialty Finance is oversold when it is subject to a persistent downward pressure due to extreme fund outflows. When the Specialty Finance is oversold it is often due for a rebound. Values of the Specialty Finance oscillator lower than -2.5 signify oversold conditions. It must be noted that the Specialty Finance oscillator must be analyzed ibn conjunction with the rest ofSpecialty Finance 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 Specialty Finance RSI.
Specialty Finance overbought conditions
Specialty Finance is overbought when it is subject to a persistent upward pressure due to extreme fund inflows. When the Specialty Finance is overbought it is often due for a correction. Values of the Specialty Finance oscillator higher than +2.5 signify overbought conditions. It must be noted that the MacroVar oscillator must be compared to the rest of the Specialty Finance 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.
Specialty Finance RSI indicatorThe 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 Specialty Finance is in a downtrend RSI values between 50-60 signify overbought conditions before the downtrend is ready to resume. DuringSpecialty Finance 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.
Specialty Finance industry returnsMacroVar calculates Specialty Finance returns for the following timeframes: Daily, Weekly, Monthly, Yearly. The formula for calculating returns is:
Specialty Finance returns = (Specialty Finance Closing Price – Specialty Finance Previous Price)/(Specialty Finance Previous Price)