Module 04 · Macro sensitivity

Macro Sensitivity

Measured, not narrated. No one here is asked how rates affect this stock — the engine regresses the two return series and reports what it finds, and every relationship on this page carries a t-statistic and an observation count so a weak answer reads as weak.

Synthetic demo series — not real market data
Strongest measured relationship10-year Treasury yield β -0.79t = -35.25 · n = 126 · r² = 0.91
|t| > 1.96 — significant at the conventional 5% cut-off

Sensitivity matrix — demo instrument · sorted by |correlation|

FactorCorrelationOLS βt-statnVerdict
10-year Treasury yield-0.95-0.7860.91-35.25126significant
WTI crude oil0.180.3480.032.02126significant
CPI, all urban0.137.4530.021.44126not significant
Fed funds rate-0.05-0.0370.00-0.61126not significant

β is the OLS slope of monthly instrument returns on monthly factor changes. Click a row to inspect that factor below.

Skipped factors

FactorEngine’s reason
USD/INRonly 19 overlapping dates, minimum is 25

Scatter — 10-year Treasury yield change (x) vs instrument return (y)

-15.9%19.4%13.3%-15.9%0

α = 0.001 · β = -0.786 · r² = 0.91 · t = -35.25 · n = 126 significant at 5%

Rolling β — 10-year Treasury yield, 36-month window

0.07-0.902019-01-012026-07-01

Each point is the OLS β over the trailing 36 months. A stable line is a relationship; a wandering one is a coincidence with a good quarter.

Instrument risk — demo series, monthly

Annualised volatility (12 periods/yr)16.0%
Maximum drawdown-44.9%
Drawdown peak → trough2018-07-012021-06-01
Observations127

Correlation over a chosen window is not causation — a factor can track a stock for five years and mean nothing. The t-statistic is the honesty term: it says how easily this slope could have come from noise, and it is printed next to every beta on this page for exactly that reason.