Hamburger
Request a demo
Close
Close

Home Solutions Insights Media People Contact Login

Omaega Nebula Homepag
Astronaut Float
Extract signal from noise with Qi Analytics
Search and analyse 6000 securities across asset classes in real time,
to uncover macro opportunities and identify hidden macro risks in your portfolio.
Qi insights
Insights showcase topical observations from Qi.
How Qi data can be used to generate trade signals,
observe regime shifts or stress test different macro scenarios.
Raychel Sanner 0Pswkddfxii Unsplash
25.11.2021
Beware High Yield
The iShares ETF tracking US High Yield is once again being driven by macro factors after 3 months out of regime.
See more
Sunil Ray Aqprqg Ji3C Unsplash
24.11.2021
Equities lead bonds?
US Financials hit one sigma cheap versus US Real Estate last week. That’s one of the biggest Fair Value Gaps of the last 12months.
See more
View more insights
Close
Raychel Sanner 0Pswkddfxii Unsplash
25.11.2021
Beware High Yield
The iShares ETF tracking US High Yield is once again being driven by macro factors after 3 months out of regime.
It is also below macro model value. The latest widening in HY credit spreads leaves spot HYG 1.4 sigma or 0.9% cheap to model. While that FVG is towards the bottom end of recent ranges, model fair value is trending lower. When fundamental macro conditions continue to deteriorate as they are currently, Fair Value Gap signals come with a health warning.
Screen Shot 2021 11 25 At 170034
It is worth comparing the US High Yield model to its Asian equivalent. The iShares Asian High Yield ETF AHYG is in a strong macro regime but, in contrast to the US, it screens as rich to model. A +1.1 sigma FVG means it is 6.9% above macro fair value.
Screen Shot 2021 11 25 At 170056
Like US High Yield, macro fair value is trending lower. The recent bounce in AHYG has not been supported by macro factors, but by flows – the ETF has seen a surge of inflows of late.

In Asia, hopes Beijing eases policy to help the property sector has prompted a wave of bottom fishing in AHYG. Thus far, the flow-induced rally exceeds any improvement in macro fundamentals. The macro environment is also poor for US High Yield, but there spot HYG has priced in a fair degree of bad news.
Sunil Ray Aqprqg Ji3C Unsplash
24.11.2021
Equities lead bonds?
US Financials hit one sigma cheap versus US Real Estate last week. That’s one of the biggest Fair Value Gaps of the last 12months.
Previous analysis has discussed how the relative value between Financials & Real Estate can be used a way to capture the equity market’s view on interest rates - REITs tend to outperform (underperform) banks when bond yields are falling (rising).
Histogram Line Chart New Size
The FVG on XLF vs. IYR has already corrected. From -1 sigma cheap on Friday to zero now. The move in bond yields post Powell’s renomination as Fed Chairman has seen Financials outperform.

Similarly, the -1 sigma FVG early in Sep occurred a few weeks before a 25bp back-up in 10y US Treasury yields. This begs the question can the Financials / Real Estate ratio offer any signal for US yields?

On the chart above the green vertical lines show every time the XLF / IYR ratio has hit 1.5 sigma cheap on Qi. That’s happened 12 times since 2015. On four occasions 10y US yields fell over the next few weeks; but eight times yields rose &, on average, that move was worth 7bp over the subsequent 4weeks .

A long way from being conclusive, but an example of how to use Qi data in your workflow. Markets often work with leads & lags; different asset classes discount macro shifts at different speeds. The Qi framework helps highlight how dislocations in one corner of the market can help signal opportunities elsewhere.
Green Triangle
Woman Walking Up
Using sophisticated yet transparent mathematics we deliver real time clarity around the macro forces driving markets, valuation anomalies, high probability trading signals, price trend shifts and the real underlying macro risks in your portfolio.
Nasa Space Brown
Man Looking Into Diamond
We work with leaders in the fields of machine learning, Bayesian inference and astrophysics from Cambridge, Princeton and Harvard. Our technologists have backgrounds at the European Space Agency and Microsoft and have harnessed modern cloud based architectures.
The result is multiple delivery channels and effortless integration into your workflow.
Purple Sky
Woman Looking Up 2
The largest and smartest money in the world now incorporates Qi’s analytics in their investment process. Methodology is transparent and documented.

Access a whole new level of actionable insight, gain clarity and save time where others find confusion and rely on educated guesses.

Watch the video
Quant Insight. Look Up.
Close
Thank you for request
A team member will contact you soon shortly.
Request a demo
Simply complete the short enquiry form and we will be in touch to get you access to the most suitable Qi solution.

Or, book a 15 min introductory call to learn more:
Click here
Name: 
Company email: 
Tel number (optional): 
Company: 
My geographical location is:

My asset class focus is:
Submit