equal weighted index

Optuma General Discussion
1

how to create an equal weighted index?

2

Hi Ricky,

You can create a custom code using the POWER() function for a geometric (equal-weighted) index, such as this example for the big 5:

POWER(AAPL:US * MSFT:US * GOOGL:US * AMZN:US * NVDA:US, POWER=0.20)

Custom code builder: https://www.optuma.com/kb/optuma/scripting/custom-code-builder

More details on creating a custom index (if you have the custom breadth module watch the video for an easier way):

https://www.optuma.com/kb/optuma/scripting/custom-index

3

For an equal-weighted index of the so-called ‘Magnificent 7’ stocks use the following to create a custom dataset under Data > Custom Codes:

POWER(AAPL:US * AMZN:US * GOOGL:US * META:US * MSFT:US * NVDA:US * TSLA:US, POWER=1/7)

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