One post tagged with "market-analysis"

Commodity Benchmarking​

Resources companies can now benchmark their stock performance against relevant commodities instead of market indices.

What's New​

• Commodity Selection - Choose from Gold, Silver, Iron Ore, Copper, Lithium, Oil, and Natural Gas
• Primary Commodity - Set your main commodity for AR/CAR calculations
• Dynamic Benchmarking - Abnormal returns are calculated relative to your chosen commodity

Why This Matters​

For a gold mining company, stock movements are often driven by gold prices rather than broad market movements. Benchmarking against gold provides more meaningful analysis of announcement impacts.

How to Enable​

1. Go to Company Settings → Market
2. Toggle Commodities Enabled
3. Select your commodities
4. Click the star to set your primary commodity

Technical Details​

When commodities are enabled:

$$\text{Expected Return} = \alpha + \beta \times \text{Commodity Return}$$ $$\text{Abnormal Return} = \text{Actual Return} - \text{Expected Return}$$

This replaces the default AXJO benchmark with your selected commodity.