Weather#173tier 2live in productionNew
drought pdsi agribusiness
cadence: Weeklydata: mediumlong onlyshort onlylong short
paper
2019
Source
Hong, H., Li, F., Xu, J. (2019). "Climate risks and market efficiency." Journal of Econometrics, 208, 265-281.
Read the paper →
What it checks
Long-running farm-belt drought → long water utilities + seed; short food processors.
Mechanism
Sustained D2+ drought in farm-belt → water utilities long; pure-yield ag short.
No production champion data for this family yet. Stats appear once the discovery pipeline promotes at least one strategy with this family tag.
Signal rule
D2+ drought in IA/IL/IN/MN/NE/KS > 4 weeks → long water utilities/seed; short ADM/BG; hold 30/90d
Data dependencies
daily_pricesAdjusted-close OHLCV for every US-listed ticker; primary price feed.
usdm_droughtWorker data table — see services/worker schema.
Expected edge
- Paper alpha
- 50-100 bps/mo
- Paper window
- T+0 to T+90d
50-100 bps/month drift.
Example tickers where this is likely to fire
Illustrative only — the signal fires based on the live data, not a fixed list.
Related families
Explore drought pdsi agribusiness on alphactor.ai
See which tickers this family is currently firing on, with live signals and rankings.