Subindex

AAA

DEFINITION of 'Subindex'

A group of securities that are part of a larger classification, but that are also tracked as a separate group because of a common subcharacteristic.


A subsurvey that is a single component of a broader survey. A subindex answers a smaller question that is part of a larger question.

INVESTOPEDIA EXPLAINS 'Subindex'

For example, a grains subindex might only track soybeans, wheat and corn, providing a snapshot of just one part of the overall agriculture sector. Similarly, a copper subindex would track the performance of just one metal, while a broad-based metals index would track the performance of all metals.


The Present Situation Index is a subindex of the Consumer Confidence Index. The CCI is a broad measure of people's expectations about near-future economic performance, while the PSI emphasizes attitudes toward business and employment conditions. The PSI is combined with another subindex, the Expectations Index, which asks consumers about their expectations for economic activity. Together, these two subindices form the CCI.

RELATED TERMS
  1. Topix Core 30 Index

    The Topix Core 30 Index is a market index composed of 30 of ...
  2. Index

    A statistical measure of change in an economy or a securities ...
  3. Sector Fund

    A stock mutual, exchange-traded or closed-end fund that invests ...
  4. Diffusion Index

    1. A measure of the percentage of stocks that have advanced in ...
  5. BUGS Index - HUI

    An acronym for "basket of un-hedged gold stocks". The BUGS index ...
  6. Index Fund

    A type of mutual fund with a portfolio constructed to match or ...
RELATED FAQS
  1. What are the Basel III rules, and how does it impact my bank investments?

    The Basel III rules are a regulatory framework designed to strengthen financial institutions by placing guidelines pertaining ... Read Full Answer >>
  2. What advantages do corporations have over privately held companies?

    The chief advantage that most publicly traded corporations enjoy – and the primary reason why private companies decide to ... Read Full Answer >>
  3. How can the exponential moving average be used in swing trading?

    The exponential moving average (EMA) is a variation of the simple moving average that places more emphasis on the latest ... Read Full Answer >>
  4. Why is the Triple Exponential Moving Average (TEMA) important for traders and analysts?

    The triple exponential moving average (TEMA) is important for traders and analysts because it is useful as a trend indicator. ... Read Full Answer >>
  5. Why is the Vortex Indicator (VI) important for traders and analysts?

    Doug Siepman and Etienne Botes developed the vortex indicator to anticipate reversals in price trends. They believed that ... Read Full Answer >>
  6. What does a negative correlation coefficient mean?

    A negative correlation coefficient means that, for any two variables X and Y, an increase in X is associated with a decrease ... Read Full Answer >>
Related Articles
  1. Active Trading

    Introduction To The Arms Index

    Developed in 1967 by Richard Arms, this volume-based breadth indicator can be applied over various time periods.
  2. Mutual Funds & ETFs

    Beware The Index Hugger

    These funds put the squeeze on your money. Don't pay for service you're not getting.
  3. Economics

    The ABCs Of Stock Indexes

    Indexes can track market trends, but they're not always reliable. Can you trust them?
  4. Options & Futures

    Investing 101: A Tutorial For Beginner Investors

    Do want to invest, but don't know how to begin? We'll show you the building blocks you need to get started.
  5. Mutual Funds & ETFs

    Index Investing

    Get to know the most important market indices and the pros and cons of investing in them.
  6. Trading Strategies

    Bucking The Trend With Pattern Failure Strategies

    The best trade could be in the opposite direction when a classic price pattern doesn't behave according to ideal rules.
  7. Options & Futures

    Circumvent Limitations of Black-Scholes Model

    Mathematical or quantitative model-based trading continues to gain momentum, despite major failures like the financial crisis of 2008-09, which was attributed to the flawed use of trading models. ...
  8. Trading Strategies

    Why & How To Reevaluate Your Trading Strategy At Midday

    Take a step back at the lunch hour and reevaluate the trading day.
  9. Chart Advisor

    3 Basic Material Stocks Poised For A Pop

    After large market swings such as the one seen on March 30, 2015, it is not surprising to see traders become more tolerant towards taking on risk.
  10. Technical Indicators

    Use Volume And Emotion To Tackle Topping Patterns

    Selling short in a topping pattern offers an advantageous reward-to-risk profile, but it can be hard to find good entry prices.

You May Also Like

Hot Definitions
  1. Fixed-Income Arbitrage

    An investment strategy that attempts to profit from arbitrage opportunities in interest rate securities. When using a fixed-income ...
  2. Venture-Capital-Backed IPO

    The selling to the public of shares in a company that has previously been funded primarily by private investors. The alternative ...
  3. Merger Arbitrage

    A hedge fund strategy in which the stocks of two merging companies are simultaneously bought and sold to create a riskless ...
  4. Market Failure

    An economic term that encompasses a situation where, in any given market, the quantity of a product demanded by consumers ...
  5. Unsystematic Risk

    Company or industry specific risk that is inherent in each investment. The amount of unsystematic risk can be reduced through ...
  6. Security Market Line - SML

    A line that graphs the systematic, or market, risk versus return of the whole market at a certain time and shows all risky ...
Trading Center