Weather#356tier 2experimental liveNew

degree days utility revenue lead

cadence: Dailydata: lowlong only
paper
2018
Source
Linn, J. & Muehlenbachs, L. (2018). "The heterogeneous impacts of low natural gas prices on consumers and the environment." Journal of Environmental Economics and Management 89, 1-28.
Read the paper →

What it checks

When heating/cooling demand spikes far above the 5-year norm, regulated utilities tend to beat revenue expectations 30 days out.

Mechanism

Extreme HDD/CDD anomalies drive utility revenue beats with a ~30d lead. Utility analysts under-react to within-quarter weather shocks.

No production champion data for this family yet. Stats appear once the discovery pipeline promotes at least one strategy with this family tag, or once a multi-family blend that includes it earns a champion slot.

Signal rule

30d-roll national |HDD+CDD - 5y same-week baseline| z >= 1.5 -> LONG regulated utility T+1; hold 21/42/63d.

Data dependencies

  • daily_prices

    Adjusted-close OHLCV for every US-listed ticker; primary price feed.

  • eia_degree_days

    Worker data table — see services/worker schema.

Expected edge

Paper alpha
+1-2% over 42d
Paper window
21/42/63d

~1-2% over 21-42d on extreme weather quarters.

Example tickers where this is likely to fire

Illustrative only — the signal fires based on the live data, not a fixed list.

Related families

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For informational and educational purposes only. Not financial advice. Learn more