RE:RE:RE:S&P Dow Jones Indices Announces Changes to the S&P/TSX CanadI'd like to join the conversation, if I may.
I discovered Stockhouse a week or so ago and have been following the threads
re: the Canadian equities I am holding, including Avigilon. Happily, the posting
content seems to be limited to informed discussion. That is appealing to me.
When I couldn't open the article via your link, I went looking for the article and found
a different article, the article linked below. It is a more recent paper (2011) on the
effects of index inclusion on equities, albeit a more general paper than the one you cited.
https://www.imf.org/external/pubs/ft/wp/2011/wp1147.pdf
According to the paper’s premises we should see a stock price increase, increased trading
volume, additional analysts’ coverage, and a move toward the index’s
Beta (that move
referred to in the paper as, “comovemnet’).
(An aside) Checking Avigilon's
Beta on TMX Money, I found a listing of 0.395. Could that possibly be
correct? Avigilon is up YTD over 160% and the TSX Composite is up 6.81% YTD. Against
which benchmark is "officialdom" measuring Avigilon's relative price movement?