The Ripple Effect: Company Connections from Detailed Estimates blueprint was first introduced in the Quantamental Research & Solutions whitepaper The Analyst Matrix, and used in support work, The Ripple Effect. The blueprint studies the lead-lag return relationship among connected firms by utilizing Company Connections: Detailed Estimates, Compustat Financials, and Index Data.

Leverage this workflow to examine explicit and implicit linkages between firms, with a focus on networks of connected companies based on sell-side analyst coverage. Explore investment strategies arising from lead-lag relationships between fundamentally connected firms and understand factors driving returns, including network complexity.

This Blueprint includes:

• Company Connections: Detailed Estimates: Derived from S&P Capital IQ Estimates data, this dataset looks at the number of shared sell-side analysts between companies. Utilize this dataset to identify connections between companies, improve your understanding of peer groups, and inform signals based on connections.
• Compustat Financials: Provides standardized North American and global financial statements and market data for over 80,000 active and inactive publicly traded companies. This dataset includes daily history of pre-calculated company-level market capitalization, including limited partner shares, total enterprise value, and non-traded shares outstanding.
• Index Data: Premium index benchmarking data from major index providers that allows investors to track and simulate index performance.
• S&P Capital IQ Workbench: A web-based notebook environment that allows you to perform data analysis or build models using collaborative notebooks that support multiple languages, built-in data visualizations, and automatic versioning.