Research / Lead and lag

Cross-asset and cross-sector transfer

Information shows up in one market or sector before it reaches a related one.

The idea

Information shows up in one market or sector before it reaches a related one.

Why it might exist

Attention and capital are limited, so related markets do not reprice at the same moment.

Who is on the other side

Participants who watch only one market.

What would retire it

The lead disappears when measured at prices that could be traded.