A new study just released by spatial finance data provider, SRS strongly points to the correlation between company stock performance and their investment in environmentally friendly energy sources. The group of companies leading the transformation have outperformed S&P Utilities index on average by 7% over the last 10 years. The reverse is also true – utilities that do not materially invest into the renewable sources have underperformed the index by about 10% during the same period.

The US power industry is going through a major transformational shift from coal and oil to natural gas and renewable (wind and sun) energy sources. Woobler’s data science used Woobler massive knowledge graph of unified data sources to understand the dynamics of this transition on a plant-by-plant basis for 23 publicly traded utilities accounting for 50% of US electricity generation.

Alex Vengerovsky, SRS Chief Data Scientist says,

The power of connected data is on full display with our case study as we were able to quickly extract the relevant data points and establish a correlation between fuel sources and stock performance.

For more information, please visit SRS’s web site or email support@spatialrisksystems.com

About Spatial Risk Systems:

SRS is a data connectivity company focused on spatial finance. We have created a multi-tier data map showing where physical economic activity takes place on a global basis and have connected this to key risk factors and open data sets in the form of a knowledge graph.

Alex previously spent the past 12 years focused on all things data at the Westport, CT based hedge fund, Bridgewater Associates.

Spatial Finance is a way to unify geospatial-climate, socio-economic, entity relationship and other data sources to use for operational assessment, risk management, portfolio/index construction and variety of other business decisions. The resulting highly connected and consistent data structure is known as a Knowledge Graph.

The post Stock market rewards environmentally friendly utilities first appeared on Spatial Risk Systems.

New York, February 9th, 2021

– Understanding stock performance of COVID-19 award recipients – SRS’s data science team is excited to share an interesting correlation between government spending surrounding COVID-19 CARES Act and stock performance of public companies participating in the program.

CARES Act and other COVID-19 supplemental appropriations resulted in a very large  volume of contracts awarded by the Health and Human Services Administration (HHS) to a variety of commercial entities, both public and private.

Companies participating in COVID-19 related development include manufacturing, distribution and delivery of personal protection equipment, vaccines, test kits and related materials and services.

Using the spending data available from the US Government we identified the top 22 public companies who received COVID-19 related HHS awards, analyzed their corporate linkages to identify the ultimate parent. We then excluded the 2 best and 2 worst stock performers from the analysis.

The resulting set of companies offered a sensible representation of supply chain representation. It included companies operating in pharmaceutical, base chemical components, manufacturing, distribution, medical equipment, and service delivery sectors.  Company stock returns were analyzed for the time period between January 2 and December 4 2020 and compared with return of S&P Index (.INDX). The resulting set of 18 COVID-19 award recipients performed markedly better than the rest of the market. While S&P 500 index delivered 13.5% return during this period the average return of the COVID-19 award recipients exceeded 21%.

Alex Vengerovsky, SRS Chief Data Scientist says :

“By connecting and correlating multiple data sets some interesting questions arise. If we assume that vaccinations, testing and other health management measures to fight the pandemic are here to stay then the government funding would represent a new and continuous revenue stream for the whole supply chain. Should that data be accounted for in assessing performance of the portfolios?”

The post The SRS Knowledge Graph reveals CARES Act award recipients outperformed the S&P 500 benchmark by 60% first appeared on Spatial Risk Systems.