illio – Market Insights

The Discover tool is available within TWS, Client Portal, and Mobile TWS. It can be accessed in TWS using the New Window button at the top of the screen. Under the Information Systems area, locate and hover above the Discover label and in the expansion, window select Illio from the list of research providers. A standalone window will open.

Illio consists of three main research areas:

• Market Insights
• Insight Widget, and
• Insight Dashboard

The Markets Insights area is accessed by clicking on the blue “See market insights” pill box at the top left of the screen. In Market Insights the investor can toggle between six pages of data for an overall picture of the 500 US stocks in the S&P 500. The data is broken down between two performance pages:

• Performance vs Market,
• Largest 1 day moves,

And four risk pages:

• Volatility and Day Moves,
• Risk-Return,
• Largest Volatility Change, and
• Market Impact Bands

This lesson will discuss each section and its value to the investor. To switch between pages the investor clicks the left and right arrows at the top of page.

What information is in the Performance vs Market area?

The Performance vs Market area shows the overall performance of 500 US stocks compared to the market through an easy-to-read chart color coded in green for stocks overperforming the market, yellow for those performing in line with the market, and red for those underperforming. Hover the cursor over the chart to see a list of each market in the category and their performance percentage. Underneath the chart is a breakdown of the percentage of the overall 500 US stocks in the S&P 500 that fall into each of those three categories. At the bottom of the page is a blurb on why this information is useful: in this case the investor to see how all the instruments in the group have performed relative to the market in one place.

What information is in the Largest One Day Moves?

The Largest One Day Move area shows the three underlying's with the largest up and down one day moves of the past year. The page breaks down the information with a statement at the top of the page with the largest up and down move stocks. Underneath is a chart with the three stocks with the largest one day up and down moves. Continuing toward the bottom is the breakdown of the percentage moves followed by why this information is useful; investors should be mindful of large single day swings when considering allocations or strategies.

What information is in the Volatility and Day Moves?

The Volatility and Day Moves page compares the volatility of each stock to the market in an overview pointing out the highest and lowest single stocks. At the top of the page is a summary listing how many out of the total have volatility above the market. Please note that the number could be greater than 500 to account for stocks that have entered or left the S&P 500 during the year. There is a bar chart showing the number of stocks and their volatility compared to the market, hover the cursor over each bar to see the stocks volatility. The chart is followed by the statistics and at the bottom an explanation of why this data is important to an investor, to understand each instrument’s risk in the context of the amount it could move on an average day.

What information is in the Risk-Return?

The Risk-Return page shows the top three instruments by risk return ratio and an interactive heat map for all 500 stocks that when rolling the cursor over shows the ratio of the one-year return over the one-year volatility ratio as well as the individual one-year return and one year volatility. Below the heat map are stats on the top and bottom three performers and at the bottom of the page an explanation of why the risk return ratio is important to investors stating instruments with a risk-return ratio greater than one will reward the investor for the risk they take and risk-return ratios below one will not reward the investor for the risk they take.

What information is in the Largest Volatility Change?

The Largest Volatility Change shows which stocks in the S&P 500 have had the biggest changes in volatility over the past year. At the top of the page the percentage of instruments with a volatility increase and decrease is stated. Below is a pie chart showing the volatility increase and decrease percentages. Hover the cursor over the chart to see each individual stock and their volatility change percentage. Below the chart are stats ion the largest increase and decrease. At the bottom of the page explains that these stats help the investor focus on the instruments which have had a significant change in the amount they move per day.

What information is in the Market Impact Bands?

The Market Impact Bands page shows how the S&P 500 stocks react when the overall market moves. The bar chart shows a breakdown of the beta bracket and hovering the cursor over each bar shows the beta impact for each stock. Below the chart are statistics followed by an explanation on why the information on this page is useful: Beta tells the investor how much the instrument reacts to move in the overall market.

The Illio Market Insights is a valuable tool for investors looking to see the how stocks in the S&P 500 compare in several metrics to the overall market.