How To Build A Company Index In Eikon
If you like to trade equity indices as opposed to individual stock names, it is very helpful to know what the top 5 companies are for each of the indexes you trade. In this video we show you how to build a Company Index in Eikon.
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So, thanks for the questions guys, it’s actually quite simple to do, and I’ll quickly explain what we use it for. As you guys would have heard there is often very important company news being announced in the news feed or over the audio squawk or on twitter etc on a regular basis.
For us who like to trade equity indices as opposed to individual stock names, it is very helpful to know what the top 5 companies are for each of the indexes that we trade, and we’ll show you how you can find that info in Eikon as well.
However, other times it might be news about a company that you are not that familiar with, like a while back we had news coming out from Merck KGA regarding the company that is stopping their covid-19 vaccine development.
That type of news is big news for the induvial company, but it might also affect the relative equity indices that it’s listed in as well. So, that’s where something like the Company Index comes in handy because it helps us to quickly search for company names to see in which index that we are trading they might be.
So, to illustrate this we can just select control and F on our keyboard to bring up a quick search bar, and from there we can just type in the company name. So, let’s use Merch KGA as the example used by one of our subscribers.
You can see if we type in Merch KGA it gives us just one option and that is inside the DAX. If we were to search for something else we can follow the same process. So, let’s say we get important news out from Astrazeneca and it’s very market moving we can do a quick search for the name, and then we see there is two finds, the one is in the FTSE100 and the other in the Eurostoxx50.
Now of course, sometimes even if it’s very important news for an individual company it might be such a small weight in the index that there is barely a move and you can just ignore it, but often times the news hits so fast that you can’t go looking for the weighting, you just quickly want to see in which equity index it is and then you can track the price action from there to see if it moves or not.
So, how to put this together is quite simple. I created a new monitor in Eikon. And then I’ve gone ahead and split that into 6 columns, one for each of the 6 indices that I trade, now of course if you trade more then by all means add more column in. For the Columns I’ve kept things really bare bones because I just want the company name as well as the current percentage change on the day.
Once you have that you can just select the equity index you want to track, and once you have it selected you can just click to expand the option so that you see all the individual company names.
Then, if you want to do some research on the index such as the top companies and what weighting they have you can simply open up a new tab in Eikon and then find and select the index that you want to see, let’s use the FTSE100 as an example.
Once you’ve selected the name it will open up a neat overview page of each index, and if you want to see what the constituents are and how important they are for the index then you can just select the constituents option.
Now from here you can simply go to the market cap column and use that as your filter, that way you can immediately see all the companies filtered in their ranking by market cap. Keep in mind though if you want to do this for something like the Dow Jones then you might want to choose the performance today option which will give you the share price because remember the DJI is a price weighted index not a market cap weighted index, so the most important companies should be filtered by share price.
So, these for me are handy tools to have available if you want to understand the importance of individual stock names. So, for example, let’s go to any one of these, let’s open the Dow again, next time you see that United Health or Goldman Sachs, or Home Depot is reporting you know it’s going to be very important for the Dow, more important for the Dow compared to the S&P for example where it’s part of the index but small compared to the big names with bigger market cap.
So, hope that helps guys, any other questions don’t hesitate to let us know.
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If you find this content helpful, you’ll love Financial Source.
There’s a link below were you can learn more about it
https://financialsource.co
----
We interpret and explain price moves in real-time, 24 hours a day. Our team of analysts produce text, video and audio commentary.
You understand the markets and trade with confidence. Learn more at our website here: https://financialsource.co
-----
So, thanks for the questions guys, it’s actually quite simple to do, and I’ll quickly explain what we use it for. As you guys would have heard there is often very important company news being announced in the news feed or over the audio squawk or on twitter etc on a regular basis.
For us who like to trade equity indices as opposed to individual stock names, it is very helpful to know what the top 5 companies are for each of the indexes that we trade, and we’ll show you how you can find that info in Eikon as well.
However, other times it might be news about a company that you are not that familiar with, like a while back we had news coming out from Merck KGA regarding the company that is stopping their covid-19 vaccine development.
That type of news is big news for the induvial company, but it might also affect the relative equity indices that it’s listed in as well. So, that’s where something like the Company Index comes in handy because it helps us to quickly search for company names to see in which index that we are trading they might be.
So, to illustrate this we can just select control and F on our keyboard to bring up a quick search bar, and from there we can just type in the company name. So, let’s use Merch KGA as the example used by one of our subscribers.
You can see if we type in Merch KGA it gives us just one option and that is inside the DAX. If we were to search for something else we can follow the same process. So, let’s say we get important news out from Astrazeneca and it’s very market moving we can do a quick search for the name, and then we see there is two finds, the one is in the FTSE100 and the other in the Eurostoxx50.
Now of course, sometimes even if it’s very important news for an individual company it might be such a small weight in the index that there is barely a move and you can just ignore it, but often times the news hits so fast that you can’t go looking for the weighting, you just quickly want to see in which equity index it is and then you can track the price action from there to see if it moves or not.
So, how to put this together is quite simple. I created a new monitor in Eikon. And then I’ve gone ahead and split that into 6 columns, one for each of the 6 indices that I trade, now of course if you trade more then by all means add more column in. For the Columns I’ve kept things really bare bones because I just want the company name as well as the current percentage change on the day.
Once you have that you can just select the equity index you want to track, and once you have it selected you can just click to expand the option so that you see all the individual company names.
Then, if you want to do some research on the index such as the top companies and what weighting they have you can simply open up a new tab in Eikon and then find and select the index that you want to see, let’s use the FTSE100 as an example.
Once you’ve selected the name it will open up a neat overview page of each index, and if you want to see what the constituents are and how important they are for the index then you can just select the constituents option.
Now from here you can simply go to the market cap column and use that as your filter, that way you can immediately see all the companies filtered in their ranking by market cap. Keep in mind though if you want to do this for something like the Dow Jones then you might want to choose the performance today option which will give you the share price because remember the DJI is a price weighted index not a market cap weighted index, so the most important companies should be filtered by share price.
So, these for me are handy tools to have available if you want to understand the importance of individual stock names. So, for example, let’s go to any one of these, let’s open the Dow again, next time you see that United Health or Goldman Sachs, or Home Depot is reporting you know it’s going to be very important for the Dow, more important for the Dow compared to the S&P for example where it’s part of the index but small compared to the big names with bigger market cap.
So, hope that helps guys, any other questions don’t hesitate to let us know.
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If you find this content helpful, you’ll love Financial Source.
There’s a link below were you can learn more about it
https://financialsource.co
