mag7 factor overlay
Mechanism
AQR's 2025 "A New Paradigm in Active Equity" identifies Mag-7 concentration as its own factor: when the Mag-7 (AAPL/MSFT/NVDA/GOOGL/ META/AMZN/TSLA) outperform in concert, the rest of the market lags mechanically (index-weight rebalancing flow), and vice
Data dependencies
daily_pricesAdjusted-close OHLCV for every US-listed ticker; primary price feed.
Expected edge
Signal construction (own-ticker variant — not the Mag-7 themselves): • Compute Mag-7 equal-weight return series from daily_prices • Rolling 60d Mag-7 cumulative return → mag7_trend • Variants: (a) "rotation_away": LONG ticker when Mag-7 trend > +5% AND ticker is NOT Mag-7 AND t
Illustrative pattern only
NOT a backtestIllustrative pattern only — see /app for live backtests and the actual current equity curve.
Explore mag7 factor overlay on alphactor.ai
See which tickers this family is currently firing on, with live signals and rankings.