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Trading Signals Based on the Network Connections Between Companies.
The Value of Timely Supply Chain Data
- Investors still appear to focus primarily on customer relationships, as first degree customer momentum remains a strong near-term factor and is especially affected by timeliness of the data; second degree customer momentum shows its effect after a significant delay and is ripe for acceleration with a timely data source.
- Supplier momentum is a weaker effect than customer momentum, but is still not fully incorporated into the market.
- Changes in profitability metrics can push or pull value up and down the supply chain, affecting the future performance of customers and suppliers; this is likely separate from volume-driven propagation because of its opposite directional effect.
- Information on unlisted company relationships is not fully incorporated in the market.
- Complex metrics like eigenvector centrality are not fully incorporated in the market, either statically or dynamically.
- Timeliness of the data matters significantly.