Glossary Detail: Sector & Industry
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Backtesting Sector & Industry on High-Beta Names
Classification of stocks by business type. Sector rotation and industry-level momentum provide context for individual stock signals.
Further Details:
Sectors are broad classifications of the economy (Technology, Healthcare, Energy, Financials, etc.) and industries are sub-classifications within sectors (Semiconductors within Technology, Biotechnology within Healthcare). Stocks within the same sector tend to move together due to shared macroeconomic sensitivities.