Arrow Insights is a research firm with a focus on macro-economic factors that support both fundamental and technical analysis. We believe that theoretical research is most useful when it can actually be applied to tactical trading and asset allocation strategies.
Arrow Insight Indexes
A.I. Managed Futures Volatility Index
The A.I. Managed Futures Volatility Index (AIMFV) is a long/short/flat diversified managed futures index. The index is both systematically and quantitatively based index of numerous components that serve as a proxy for exposures to economic sectors related to financial futures, commodity and volatility futures.
Since December 31, 2005, the U.S. dollar ($USD) has appreciated by 9% while the Dow Jones Global Bond Index (DJGYLDT), Arrow Insights Quality Value & Momentum Index (AIQVM) and Arrow Insights Extended Commodity Index (AIECI) record cumulative returns of 152%, 99% and 3.3%, respectively. The best/worst period for commodities and smart equity indexes was the weak $USD period (2005-February 2008). The best period for global bonds occurred while the $USD was volatile and rising (February 2008-May 2014). The best/worst period for smart beta equity and commodities has been the strong $USD period since May 2014 (Figures 1-2). Exposure to each index hedges $USD risk associated with deflation, corporate defaults and rising inflation.
Throughout 2016, Arrow Insights has focused on the cost of money (interest), economic growth, default-deflation-inflation risks and how they impact traditional beta relative to alternative beta, and absolute return strategies. [More]