Local Market Alpha

In a nutshell

Local Market Alpha represents the level of over-performance in risk-adjusted economic growth for a local market, compared to what the broader market would otherwise deliver.

Austin, TX is an example of a relatively high alpha market, while Phoenix is an example of a relatively higher beta market.

How this is calculated

Since StratoDem Analytics deploys advanced statistical methodology and machine learning to tie together hundreds of governmental data sets, StratoDem Analytics is able to find patterns and relationships between the various data to impute current nowcasts of the data, instead of waiting for the official governmental releases. For the headline alpha and beta, StratoDem Analytics imputes nowcasts based on dozens of other, higher frequency data sets, for metropolitan area-level output growth more than a year ahead of the Bureau of Economic Analysis. StratoDem Analytics further reduces that down to even more geographically granular levels than released by government statistical agencies, in order to serve the needs of location-driven strategy and capital commitments.

A small piece of the StratoDem Analytics provenance diagram, which maps data modeling logic from source data from dozens of agencies and other data sources to StratoDem Analytics local market nowcasts and forecasts.