ExtractAlpha Fact Sheet
Sell Side Coverage Matrix
Dynamic peer groups that reflect how investors view companies.
The ExtractAlpha Sell Side Coverage Matrix identifies economically related companies using overlapping sell-side analyst coverage rather than traditional industry classifications. By creating dynamic peer groups that evolve with the market, the dataset helps investors improve stock selection, signal generation, and portfolio construction.
Dynamic Peer Groups – Defines stock relationships based on overlapping analyst coverage, providing a more flexible alternative to static sector classifications.
Enhanced Signal Generation – Improves the performance of momentum, reversal, value, and earnings-related models through peer-relative analysis.
Cross-Stock Intelligence – Captures information spillover between economically related companies to identify predictive investment opportunities.
Global Coverage – Available across global equity markets with regularly updated peer relationships.
Applications - Designed for systematic and fundamental investment workflows, the Sell Side Coverage Matrix strengthens stock selection, earnings forecasting, and factor models through dynamic peer analysis. Regular updates enable seamless integration into existing investment and portfolio construction processes. For example: Apple’s closest peers, according to the sell side analysts who cover the stock, are NVIDIA and Google. But according to GICS and other industry classifications, Apple is a hardware company; NVIDIA a semiconductor company; and Google is an internet company. Traditional static, one-size-fits-all industry classifications do not reflect the reality that today the Mag7 are economically linked and move together. By using broker coverage to determine peer stocks, the Sell Side Coverage Matrix provides a more accurate metric for stock groupings for these and over 10,000 other names globally.
The Sell Side Coverage Matrix gives institutional investors a powerful tool to refine stock rankings, improve signal performance, and enhance risk management strategies through dynamic peer groups.
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