Understand how Market Trends works
Overview
Market Trends acts as an information hub, helping you find out what’s going on in the world and how it impacts the market. Within Market Trends, you can do any of the following:
- Deep dive into themes, and their potential impact on the market
- Identify upcoming earnings reports and their impact on other companies
- Understand what percentile of securities in your selected universe are in their 52-week high/low
- See how different sectors have performed within your selected universe
How theme generation works
When navigating to Market Trends, we’ll give you the option to explore pre-populated themes or create a custom theme.
- Pre-populated themes: Themes generated by our team and available to all Boosted.ai users.
- Custom themes: Themes that you generate on your personal Boosted.ai account. These themes are only visible to you.
Pre-populated theme creation starts with Boosted Insights identifying a potential topic of interest, and creating a summary for that theme. Custom theme creation works similarly, except that instead of our system identifying a topic, you come up with your own.
Tip: Custom themes do not update with new developments on their own. Instead, you must click Go live anytime you want to update the information within the theme. This is to ensure that we’re not regularly updating themes that users aren’t regularly checking.
For both kinds of themes, Boosted Insights then identifies any news articles within your selected delta horizon that relate to the theme by searching through over 60,000 financial publications. It then sorts the information it finds within these articles into different components of the theme’s deep dive.
Note: When identifying information within themes, Boosted Insights displays summaries of information it has read. It does not make predictions around the theme.
Tips for custom theme generation
When creating a custom theme, giving the name of a topic is often too broad to get you the kind of information you're seeking. Instead, try to identify your hypothesis as you generate your theme to generate a more valuable report.
- A high-level topic will give you a less personalized answer.
- If your theme is "Interest Rates", Boosted Insights will generate a theme on whether they're rising or falling
- A specific hypothesis will give you a more personalized answer.
- If your theme is "Rising interest rates in an inflationary environment", Boosted Insights will generate a theme on what this particular scenario means for the market.
Note: An exception is when you're referring to a single "thing" that can have specific impacts on the market (such as Generative AI, Cloud Computing etc). These can be good themes as they'll help you understand the popularity of that thing, and what its popularity means for the market.
News Heat
News Heat refers to how popular the theme is in the news within your selected delta horizon. We update news heat rankings on a weekly basis.
When evaluating News Heat for a theme, Boosted Insights looks at the following attributes for each article it finds that relates to the topic:
- Relevance to the theme
- Impact on the stock market
- Authority of the source
- Event repetition (is the event repeated in a lot of articles)
- Diversity (how distinct is the event from other events in the news)
- Level of detail
This is what dictates the order in which you see the pre-populated trending themes on the main page of Market Trends.
Thematic Impacts
Boosted Insights creates Thematic Impacts based on the information it finds in news articles combined with the understanding it already has on certain topics.
Stocks Benefiting From...
Within both a theme and a thematic impact, you’ll also see securities benefiting from one or the other side of the Theme Outlook, as well as an associated reason.
Related securities in Thematic Impacts
For each impact, we start by generating a profile using company filings. Impacts can have a profile that leans towards either side of the Theme Outlook, or both. This profile aims to describe the kinds of companies that may be affected by the impact. From there, Boosted Insights attempts to match profiles with the descriptions of companies within the Boosted.ai database.
Finally, we analyze the relationship between the profile and the description to confirm whether the security is related to one or the other side of the theme and thematic impact.
Note: Securities may be an aggregate one way towards the theme, but the other way towards one of the theme’s Thematic Impacts. This is because we separately look at the security’s relationship to the overall theme and its relationship to a specific Thematic Impact.
Stock Impact
Stock Impact represents how important a theme is to the particular security.
Consensus
Each security also has a consensus. We base the consensus on the recommendation given by each subscribed strategy that the security is in. Strategies that have performed better receive higher weighting when determining the consensus.
Thematic Sector Movers
Boosted Insights determines Thematic Sector Movers by looking at the securities within your selected universe that correlate to the theme. From there, it sorts each security into a particular sector to showcase what sectors the theme is affecting.
Developments
Developments are outcomes related to news surrounding the selected theme. We sort developments from newest to oldest and update them daily.
The flowchart below shows a visual representation of how developments are created and rated:
Generating new developments
Boosted Insights establishes developments by looking at news surrounding the theme. Each day, it starts by looking at new articles that have come in anytime after the previous run of our development pipeline. From there, one of two things will happen depending on the topic of the news article:
- The article relates to an existing development that’s less than seven days old
Boosted Insights will sort the article into the existing development, and update its summary and sentiment if necessary. - The article does not relate to an existing development less than seven days old
Boosted Insights will create a new development and sort any relevant articles into it. Articles from developments older than seven days may also be sorted into these new developments.
Once Boosted Insights sorts the article into a development, we try to match the development with an existing impact. Note that we’re not always able to sort a development into an existing impact.
Generating Major Developments
Certain developments have a Major Development tag. This means that we consider the development more impactful to the theme than a standard development.
We establish a Major Development by looking at the number of articles associated with the development.
If the number of articles is greater than the standard distribution of articles within developments across the past two weeks, it is marked as a Major Development.
Timeboxing Major Developments
If related events occur at least a week apart, they are marked as separate developments. It is possible, if they’re newsworthy enough, that they’re both marked as Major Developments. However, it is more likely that Boosted Insights will combine the two developments into one, or mark one as major and one as a regular development.
Major Development identification timeline
If there is a large number of articles related to a single development that come in within a day, it can turn into a Major Development. However, typically, we require 2-3 days to compare statistics with other developments before the Major Development is identified.
Development sentiment
Each development has an associated sentiment that is either Positive or Negative. Boosted Insights determines these by understanding if the development will lead to an increase in interest in the theme (resulting in a positive sentiment) or a decrease in interest in the theme (resulting in a negative development).