Macro Risk Explained
Stock prices do not move in isolation. Every company is exposed to macroeconomic forces — interest rates, geopolitical events, and inflation. Our macro risk module quantifies these exposures so you can understand what could move your holdings before it happens.
Interest Rate Sensitivity
When the Federal Reserve raises rates, growth stocks with distant cash flows (tech, biotech) tend to fall more than value stocks (utilities, consumer staples). We score each ticker on a 0-100 scale based on its sector, debt levels, and historical correlation with the 10-year Treasury yield.
- High (>60): Tech, biotech, high-growth companies
- Moderate (30-60): Industrials, healthcare, financials
- Low (<30): Utilities, consumer staples, REITs
Geopolitical Risk
Companies with supply chains concentrated in specific regions or significant revenue from geopolitically sensitive markets face higher risk. We analyze revenue geography, supplier concentration, and sector-specific exposure flags.
- High (>60): Semiconductor, energy with Middle East exposure
- Moderate (30-60): Multinationals with China revenue
- Low (<30): Domestic services, local utilities
Inflation Resilience
Inflation erodes margins — unless a company can pass costs to customers. We measure pricing power through gross margin stability, brand strength proxies, and historical margin behavior during past inflationary periods.
- High (>60): Luxury brands, essential consumer goods
- Moderate (30-60): General industrials, retailers
- Low (<30): Commodity producers, low-margin services