Smart Insider Transaction Index (SITI)
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The Smart Insider Transaction Index (SITI) is a dynamic metric that reflects the sentiment of insider trading activities within a given period. It is calculated by weighing the USD amount of "buy" transactions against the total USD amount of both "buy" and "sell" transactions for a specific month.
SITI focuses on public companies where insider activities have demonstrated a significant impact on stock performance. The index is calculated based on the term 'long-term insider.'
A long-term insider is defined as an insider who has executed at least 10 transactions within three years or whose transaction turnover has reached a threshold of 1 million USD. This approach ensures that the index reflects substantial and sustained insider activity, enhancing its reliability and relevance.
Note: Due to the ongoing historical data ingestion, we are constantly recalculating the SITI index. Don't forget to check out our global coverage on this page.
SITI Index Composition by Capitalization
| Unknown |
|---|
| 100.00% |
SITI Index Composition by Country
| Country | Percentage |
|---|---|
| Germany | 5.27% |
| United States | 18.53% |
| Sweden | 76.20% |
Calculation Steps:
- Buy Amount Accumulation:
- Sum the USD amounts of all "buy" transactions for the month.
- Sell Amount Accumulation:
- Sum the USD amounts of all "sell" transactions for the month.
- Total Transaction Amount:
- Combine the total USD amounts of both "buy" and "sell" transactions.
- SITI Calculation:
- Calculate the SITI as a percentage, representing the weighted contribution of "sell" transactions to the total insider trading activity.
- SITI = (Sell Amount / Total Transaction Amount) * 100
Interpretation:
A higher SITI indicates a stronger prevalence of "sell" transactions relative to "buy" transactions.
While this index is not a true volatility index, you may consider it a 'fear gauge' that functions similarly to the VIX, reflecting market sentiment and potential future volatility.
SITI values closer to 100 suggest a more bearish sentiment among insiders, while values closer to 0 indicate a more bullish sentiment.
Global Perspective:
The SITI index is calculated based on global data from all available countries, providing a comprehensive view of insider sentiment on a global scale.
Exclusive to our advanced subscription, users gain access to enhanced insights on the SITI index, including daily buy/sell transaction quantities and volume, accessible through our API. Additionally, our API provides access to the complete list of constituents in the SITI index.