Innovative Research Firm Uses Rotation to Describe Stocks, Crypto and More

Photo by Martin Sanchez on Unsplash.

The following post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga.

When thinking about a stock chart, the most common image is of the classic line chart with the price measured on the Y (vertical) axis and time measured on the X (horizontal) axis. RRG Research is a company that offers a very different and innovative perspective. Partnered with big financial names like StockCharts.com, Bloomberg, Optuma, Refinitiv, and others, RRG has been providing its unique tools to advanced hedge funds and other top players and is now moving toward retail investors. 

By monitoring individual stocks, crypto assets, sectors and entire asset classes according to a stable benchmark, the RRG® (Relative Rotation Graphs®) system is able to provide a deeper level of analysis and inference than could normally be made. Benzinga spoke to RRG Research Founders Julius de Kempenaer and Trevor Neil about RRG and the innovations coming from it in a recent interview. 

Ultimately, RRG is a way to analyze and interpret the trends and moves of the market. “RRG is a visualization tool that helps investors see and monitor rotation, sector rotation, asset class rotation of multiple securities against a benchmark and against each other,” explained de Kempenaer. 

RRG of sector rotation in the United States

RRG for cryptocurrencies vs BTC as benchmark

RRG Research is using its innovative methodologies in partnership with financial firm CMC Markets CMCX to create logic-based groupings of stock. CMC and RRG have teamed up to use a financial instrument called a contract for differences (CFD) to create tradable “share baskets” based on the underlying logic within the RRG system called RRG Momentum+. CFDs are a type of contract where the buyer never owns the underlying asset but gains or loses depending on the direction of the asset. 

“What we’re doing is taking what institutions do for their funds and making that into an accessible retail instrument basically using the logic, which is normally the exclusive domain of the institutions, and making it available to the public,” Neil stated. “I think it’s a big step forward to democratize these mathematical approaches and make them available, where you’d normally have to be big to be involved in this.”

While CFD instruments like these are meant for experienced traders and are not yet available in some countries such as the United States, investors and traders anywhere might be able to gain valuable insight and information from tools like RRG, especially as it moves more into the retail investing sphere.

The preceding post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga. Although the piece is not and should not be construed as editorial content, the sponsored content team works to ensure that any and all information contained within is true and accurate to the best of their knowledge and research. This content is for informational purposes only and not intended to be investing advice.