Economy & PolicyExtended setlive in productionNew

Geopolitical Supply Chain Risk

Updated dailyData needs: highshort only
paper
2022
Source
Extends: Caldara, D., Iacoviello, M. (2022). "Measuring Geopolitical Risk." *American Economic Review*, 112(4), 1194-1225. Carvalho, V. M., Nirei, M., Saito, Y. U., Tahbaz-Salehi, A. (2021). "Supply chain disruptions." *Quarterly Journal of Economics*. Novel multi-source composite (GDELT + ACLED + port + BDI).
Read the paper →

In plain terms

When global news tone, conflict fatalities, port throughput drops, and shipping prices all flash supply-chain stress at the same time, we short the cyclical industrials that depend on global trade for two to three weeks.

How it works

Geopolitical + supply-chain stress raises CAPEX timing risk and inventory cost for cyclical industrials tied to global trade tonnage. When the composite of GDELT tone, ACLED fatalities, port-throughput shock, and Baltic Dry proxy crosses +1.5σ, the cyclical-industrials basket underperforms over 10-20 days.

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.

  • Acled events

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

  • Port throughput

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

  • Baltic dry proxy

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

Expected edge

Reported return
untested — internal
Tested over
T+0 to T+20d

Untested — internal multi-source composite. Caldara-Iacoviello 2022 GPR index alone explains 1-2% MoM variance in cyclical-industrials returns; combining with supply-chain legs sharpens.

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 Geopolitical Supply Chain Risk 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