Fundamental#433tier 1live in productionNew

tnic peer margin shock spillover

cadence: Dailydata: mediumlong onlyshort onlylong short
paper
2008
Source
Cohen, L., & Frazzini, A. (2008). "Economic Links and Predictable Returns." Journal of Finance, 63(4), 1977-2011.
Read the paper โ†’

What it checks

When TNIC product-market peers see big margin moves, focal usually follows within 1-2 quarters.

Mechanism

TNIC-peer-basket gross-margin z over trailing 8 quarters. Margin shocks across a product-market cluster propagate to focal 1-2 quarters later.

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

long when peer-basket gross-margin 8q z >= +1.5; short on z <= -1.5; hold 21/42/63d

Data dependencies

  • income_statements

    Worker data table, see services/worker schema.

  • entity_graph_edges

    Worker data table, see services/worker schema.

  • daily_prices

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

Expected edge

Paper alpha
~3-6%/yr
Paper Sharpe
~0.6
Paper window
T+1 to T+63d

Cohen-Frazzini 2008: 113 bps/mo cluster lead-lag generalized to margin shocks.

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 tnic peer margin shock spillover 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