RISK MANAGEMENT 101: While most investors “didn’t see it coming,” Wall Street Horizon notified risk managers of Xilinx (NASDAQ: XLNX) negatives – four days prior to a month’s long series of price drops.
To be fair, there were a lot of conflicting signals regarding Xilinx, Inc. On the positive side, there’s AI and 5G and [prior to Wall Street Horizon’s Datebreaks Change], a lot of positive analyst guidance. On the negative side, the Coronavirus and flat earnings.
But ambiguity is a frequent companion.
That’s why institutional asset managers, quants, and traders all use Wall Street Horizon data to provide early identification of risk exposure. Be it stand-alone or used as a sort of “fundamental dataset” alongside all your other data sets, our clients use Wall Street Horizon data to identify risk; risk that many others “didn’t see coming.”
On October 24, 2019, Wall Street Horizon flashed a Datebreaks Change indicating a negative “corporate body posture” for XLNX. The concern was that XLNX extended its earnings date announcement by 6 days, a typical negative indicator. According to Wall Street Horizon’s tracking data, this 6-day extension to its forecasted date of January 22, 2020 telegraphed trouble.
Four days after the Datebreaks Change, XLNX started falling, starting at $93.12 on October 24th (the date Wall Street Horizon informed its risk management clients) to $84.48 on February 2, 2020.
From a risk management perspective, a joint research effort by the MIT Sloan School of Management and the University of Texas produced a whitepaper entitled: “Time Will Tell: Information in the Timing of Scheduled Earnings News.”
It highlights how delayed earnings dates can often be indications of negative news. Wall Street Horizon also offers a wide range of data, products and services that help a global list of institutional investors identify and mitigate risk.
We invite institutional traders, asset managers, and risk managers to speak with our Director of Quantitative Solutions. Learn more about how to customize Wall Street Horizon data to your specific needs. We can also set you up for a no-cost 90-day trial.