Company Events & EarningsExtended setexperimental liveNew

Recall Competitor Benefit Long

Updated dailyData needs: mediumlong only
paper
2003
Source
Hendricks, K.B. & Singhal, V.R. (2003). "The effect of supply chain glitches on shareholder wealth." Production & Operations Management, 12(3), 269-285. (Competitor-leg cross-firm spillover.)
Read the paper →

In plain terms

When a carmaker's rival has a big recall, we go long the carmaker - its market share tends to grow over the next few weeks.

How it works

When one OEM has a major recall, direct competitors capture market-share rotation; rivals outperform ~+1.5-3% over the subsequent 10-20 trading 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.

  • NHTSA vehicle recalls

    NHTSA vehicle recall campaign data mapped to auto manufacturers.

Expected edge

Reported return
+1.5-3% over 10-20d
Tested over
T+1 to T+20d

Hendricks-Singhal 2003 (competitor leg): +1.5-3% rival outperformance over 10-20d.

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 Recall Competitor Benefit Long 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