Methodology

A transparent, seven-step research pipeline.

Every step is documented, reproducible, and refreshed monthly. Data flows from raw index holdings to a single Market Influence Score.

Step 01

Collect Holdings

Ingest current constituent data from SPY, QQQ, and DIA — including ticker, name, weight, and sector.

Step 02

Clean & Standardize

Reconcile share-class differences (GOOG/GOOGL), normalize corporate names, unify sector taxonomies.

Step 03

Normalize Weights

Rescale each index to a common 100% basis, so a 6% SPY weight is comparable to a 6% DIA weight.

Step 04

Compute LHI Score

Blend normalized weights with an influence multiplier for cross-index overlap, mapped to a 0–100 scale.

Step 05

Rank Companies

Sort by Market Influence Score to identify the top drivers of the composite U.S. equity market.

Step 06

Sector Analysis

Aggregate scores by GICS sector to reveal industry-level concentration and rotation.

Step 07

Publish Report

Package the ranked index, sector view, and commentary into a monthly institutional research brief.

Formula

LHI_i = 100 × ( α · w_i,SPY

+ β · w_i,QQQ

+ γ · w_i,DIA )

× ( 1 + λ · overlap_i )

α, β, γ — normalization coefficients per index

λ — overlap multiplier (0.15 default)

overlap_i — number of indexes containing constituent i (0–3)

Data Sources