Economy & PolicyExtended setexperimental liveNew

Gdelt Geopolitical Tone Short

Updated dailyData needs: mediumshort only
paper
2022
Source
Extends: Caldara, D., Iacoviello, M. (2022). "Measuring Geopolitical Risk." American Economic Review 112(4). Also Engle, R.F., Giglio, S., Kelly, B., Lee, H., Stroebel, J. (2020). "Hedging climate change news." Review of Financial Studies 33(3). GDELT-single-country exposure is novel (alphactor 2026-05-20).
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In plain terms

When the tone of news about a country tanks (z below -1.5), short the US-listed multinationals with revenue exposure to that country.

How it works

A material negative tone-shock in a country where a US-listed multinational has significant revenue exposure → the equity sells off over the next 1-10 trading days. Extends Caldara-Iacoviello 2022's GPR index by tightening the link to a specific equity's country footprint (v1 uses a curated map; v2 plugs into firm_country_exposure_quarterly).

No live results for this strategy yet. Charts appear once it has earned a top spot on at least one stock, either on its own or as part of a blend of several strategies.
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Data dependencies

  • Daily prices

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

  • Gdelt country tone

    A data feed this strategy reads, refreshed on its normal schedule.

Expected edge

Reported return
-0.5% to -1.5% over 5d
Tested over
T+0 to T+5d

Target -50 to -150 bps over 5d on qualifying fires.

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 Gdelt Geopolitical Tone Short on alphactor.ai

See which tickers this family is currently firing on, with live signals and rankings.

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