The Zeta model compiles "weightless" composites indexes. The Zeta weightless index goes further than a conventional "unweighted" index (which in practice usually means equal-weighted). The "weightless" construction gives a truer picture of trends most broadly shared among components.
To achieve weightlessness, Zeta3 neutralizes volatility differences before averaging. Every component thus contributes equally. The result is an index unbiased by size, price, volume or or volatility; weightless! These indexes serve somewhat like "breadth" metrics. But it's better than breadth, because it retains the scalar meaning, comparability and interpretation of percent change.
Zeta weightless indexing is applicable with stocks, sectors, countries. Click here for a graph of 34-Sector Zeta Weightless composite (as shown with SVAX sector dispersion).
To enquire about Zeta Weightless composites of your own stocks or sectors, you can leave a message back at the Models page, or use the master checklist of Analytix Services. Or call directly anytime, at (603) 643-6430.