Geopolitical#291tier 2experimental liveNew

sanctions country basket short

cadence: Eventdata: mediumshort only
paper
2019
Source
Draca, M., Garred, J., Stickland, L., & Warrinnier, N. (2019). "On Target? Sanctions and the Economic Interests of Elite Policymakers in Iran." LSE/CEP Discussion Paper. + Caldara & Iacoviello (2022) AER.
Read the paper →

What it checks

When OFAC sanctions hit multiple countries that a US-listed company discloses exposure to within a month, we expect the stock to keep drifting down for weeks.

Mechanism

Multi-country OFAC sanctions in a short window impose compounding negative repricing on US-listed firms with 10-K-disclosed exposure (Caldara-Iacoviello 2022 GPR channel). Basket-level shock magnifies single-country effect.

No production champion data for this family yet. Stats appear once the discovery pipeline promotes at least one strategy with this family tag, or once a multi-family blend that includes it earns a champion slot.

Signal rule

Count OFAC SDN actions in trailing 30 trading days against any of a ticker's exposed countries; >= 2 distinct countries -> SHORT; hold 20/60d.

Data dependencies

  • daily_prices

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

  • ofac_sdn

    Worker data table — see services/worker schema.

  • ofac_corporate_exposure

    Worker data table — see services/worker schema.

Expected edge

Paper alpha
150-300 bps over 20-60d (modeled)
Paper window
T+1 to T+60d

Draca/Caldara-Iacoviello multi-country GPR channel; internal target 150-300 bps over 20-60d.

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 sanctions country basket 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