Category Archives: Economics

A skeptical look at The Economist’s Sinodependency Index

In a recent blog postThe Economist discusses its “Sinodependency Index”, which measures the world’s economic dependence on China. This index was originally proposed in 2010. In today’s post, we will take a closer look at this index, and in the process, we will explore some of Mathematica’s finance-related capabilities.

The Economist’s Sinodependency Index (SI) is composed of S&P 500 firms, weighted according to their revenues from China. You can see how the SI has outperformed the S&P 500 over the past couple of years, with the implication that firms with more exposure to China are performing better than their less “Sinodependent” peers.
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