Evaluation of the Predictive Validity of the CapitalCube™ Market Navigation Platform

Abstract

Introduction

This is the fourth research report where various aspects of the CapitalCube™ Market Navigation Platform [CCMNP] of AnalytixInsight™ have been examined.

Previous Results

In our previous three studies, we have tested many of the CCMNP-variables as expressed through the S&P500; we have rejected the Nulls of their inter-and intra-group association in favor of the likelihood that the variables that constitute the CCMNP are not produced by random generating processes. This suggests that the CCMNP is capable of creating market relevant information that may inform the investment decision.

Current Study

The previous results beg the question that is the focus of this report: Given the Non-Random character of the various CCMNP panel variables, does this panel of information enable the identification of a particular stock that will, in the near future, experience a turning-point?

Results:

We find no evidence that the CCMNP aids in detecting turning-points for the S&P500 Panel of data tested. Various caveats to this study are detailed in the summary section of this research report. Finally, we offer that the methodology used in investigating the CCMNP is a simple, transparent, and useful model for evaluating the acuity of a MNP in detecting turning-points.