connected-stocks cohort propagation
In plain terms
Stocks held by the same group of funds tend to move together, so when a stock's peer group rallies but it lags behind, the strategy buys it expecting it to catch up.
How it works
Stocks that share many institutional owners co-move for non-fundamental reasons (correlated flow through shared fund baskets), and that co-movement is predictable. Built from the monthly N-PORT co-ownership graph, the family forms an overlap-weighted institutional cohort and trades the focal name catching up to (and later reverting from) its cohort's recent return.
Live results
51 times picked on its own · updated 2026-07-06Data dependencies
- Nport fund holdings
A data feed this strategy reads, refreshed on its normal schedule.
- Daily prices
Adjusted-close OHLCV for every US-listed ticker; primary price feed.
Expected edge
A connected-peer long-short earns about 9 percent per year (Sharpe ~1.0, half-life ~6 months) as focal names propagate up to and later revert from their institutional cohort's non-fundamental flow.
Related families
Stocks held by the same big mutual funds co-move beyond fundamentals. We trade the dislocation when one moves and the other has not caught up.
When many ETFs increase exposure to the same stock, we treat that as flow pressure and go long.
The strategy watches focused, high-conviction funds for the stocks they are newly buying or adding to, then buys those names too.
Explore connected-stocks cohort propagation on alphactor.ai
See which tickers this family is currently firing on, with live signals and rankings.