Beginner
What It Means
The labels are relative statements, sized against a baseline, not buy and sell orders. An Overweight on a region says: relative to whatever your neutral allocation to that region would be, the framework’s evidence favors holding more. It says nothing about how large your neutral allocation should be in the first place.Example
Suppose the global report marks one region’s equities Overweight and another’s Underweight. An allocator with baseline exposure to both would tilt the first up and the second down, by an amount that fits their own mandate and risk budget. An allocator with no mandate to hold either market does nothing: the labels only have meaning against a baseline.Why It Matters
The labels make views falsifiable and comparable. Because they are derived from the Quantum Score, an Overweight is a claim with visible drivers behind it, you can inspect the pillars and disagree with specifics, which is exactly what an investment committee should be able to do.Advanced
How the Labels Are Assigned
The Quantum Score is signed and centered on zero: sufficiently positive scores map to Overweight, sufficiently negative scores to Underweight, and a defined band around zero maps to Neutral. The global cross-asset report ranks regions by score, so every label is explicitly a statement against the alternatives.Reading a Neutral
A Neutral label can reflect offsetting pillar readings or readings that are individually near neutral. Inspect the decomposition to distinguish those configurations.Common Misreadings
- Treating labels as trade instructions: they are relative views to be sized within your own mandate, not orders
- Ignoring label changes: watch changes week over week, prior reports provide context for assessing and explaining upgrades or downgrades
- Comparing labels across frameworks: an Overweight here is a statement within this framework’s evidence set; it is not comparable one-for-one with another shop’s rating scale
Related Terms
Quantum Score
The score behind the labels
Tactical Asset Allocation
Tilting around a baseline
Benchmark
Where baselines come from
About this documentation. These pages describe how Parallax Macro Reports are produced: the data that feeds them, the process that writes them, and the terms they use. They are product documentation, not research.They contain no investment views. Positioning labels such as Overweight, Neutral and Underweight are defined here for reference only. Any views appear in the reports themselves, which carry their own disclosures.Parallax Macro Reports are produced by Chicago Global Capital Pte Ltd, regulated by the Monetary Authority of Singapore.