Trade Absolute & Relative Trends in Global Markets

Trends can be exploited in two dimensions: on an absolute basis and in relative terms. A key requirement to implement such trades is to use appropriate scoring tools to measure the absolute trend and the relative strength for a wider range of assets.

Identify Absolute & Relative Trends at Work

Our proprietary ETF Momentum Heat Maps, the Global Momentum ETF Heat Map and the SPDR Momentum Heat Map, capture absolute and relative trends within one chart, helping our subscribers to identify trade opportunities on both sides of the spectrum.

The Global Momentum ETF Heat Map is dedicated to multi-asset investors, as it covers the most relevant asset classes (equity, commodities and U.S. treasuries).
All ETFs that have a higher (lower) momentum score than riskless money are poised to perform positive (negative) on an absolute return basis (time-series momentum). Relative trades can be established by taking:

  1. a long position in an ETF with an increasing and relatively high momentum score and

  2. a short position in an ETF with a decreasing and relatively low momentum score (cross-sectional momentum).

The SPDR Momentum Heat Map is dedicated to U.S.-focused equity investors as it covers an S&P 500-ETF, as well as the nine most relevant Select Sector SPDRs.

All ETFs that have a higher (lower) momentum score than riskless money are poised to perform positive (negative) on an absolute return basis (time-series momentum). Relative trades can be established by taking:

  1. a long position in an ETF with an increasing and relatively high momentum score and

  2. a short position in an ETF with a decreasing and relatively low momentum score (cross-sectional momentum).

Track Record of our ETF Momentum Heat Maps

To track the efficiency of our ETF Momentum Heat Maps, we provide a weekly updated performance table which shows the cumulative return for each underlying ETF, in periods when the specific momentum score is traded above (bullish signal) or below (bearish signal) the momentum score of the riskless money market.
Although this result exclusively considers the outcome of an absolute trend investment strategy, it also gives a clear indication about the effectiveness of the relative trade capabilities of the ETF Momentum Heat Maps, as the outcome of these trades is a combination of both sides from the return table.

Below you can see the total performance of each covered ETF when its momentum score was above (=bullish) or below (=bearish) riskless money market (cash). The Global Momentum Track Record table is updated on a weekly basis.

Below you can see the total performance of each covered ETF when its momentum score was above (=bullish) or below (=bearish) riskless money market (cash). The SPDR Momentum Track Record table is updated on a weekly basis.

A Convenient Way to Generate Trading Ideas

Identify absolute or relative driven trade ideas beyond the typical mainstream-driven news feed. Detect strong trends, build a portfolio of leaders or implement sophisticated relative trades to hedge against market risks. It is your decision!

When Will You Start To Trade Relative Trends?

Screen Absolute and Relative Trends in a Systematic Way!

  • Fine-tune your trading using our advanced trend ranking tool.
  • Find out which markets are gearing up to be the next leaders.
  • Spice up your portfolio with the strongest global markets.
  • All historical rankings can be downloaded in spread-sheet format (.csv) for further analysis.