WTI Demonstrates Trading Temperature Can Be Profitable
FOR IMMEDIATE RELEASE
October 24, 2008
Contact: Anson Franklin
202-482-6090
WTI Demonstrates Trading Temperature Can Be Profitable
New York, NY (October 23, 2008) - - Weather Trends International, the global leader in year-ahead business weather guidance in retail, manufacturing, agriculture, energy and the financial sectors released a recent study on the use of long range forecast modeling and the trading of weather futures
The research team simulated trading (weather and natural gas futures) to prove that accurate proprietary forecast guidance (forecasted year ahead) can be profitably traded when employed correctly over a one to eleven month time horizon.
WTI's team of experts from the financial and weather industry provides tools and guidance to help traders better manage volatility associated with unseasonable changes in weather and the effects on equities and futures as well as commodities.
WTI employed a proprietary forecast model that shows integrated weather guidance can be used to trade ‘temperature’ profitably with future forecasts ranging from 15 days to even 11 months out, with a high degree of accuracy. The test portfolio used ‘temperature’ forecast as a valuation arbitrage in weather futures and also in a natural gas portfolio (with crude hedge).
“Proprietary forecast technology and a unique understanding of weather’s influence on futures makes WTI the only source in preparing for the financial volatility associated with weather,” said Michael Ferrari, PhD, VP of Commodities at WTI.
Given recent market volatility in the current trading environment, managing and understanding risk is of paramount concern.
“Simulated trading offers the portfolio manager or trader an opportunity to test a strategy’s profitability before capital is put at risk”, said Taylor Blaisdell, Director of Financial Weather Instruments at WTI. "If you're not using tools like this, the weather might just surprise you ... and not necessarily in a profitable way".
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About Weather Trends International, Inc.
The global leader of actionable year-ahead business weather guidance for retailers, manufacturers, pharmaceutical companies, agricultural firms and financial analysts whose business performance is impacted by everyday volatility of the weather. Clients include some of the world’s most respected and successful companies like Wal-Mart, ASDA, Target, Kohl’s, Sherwin Williams, Anheuser-Busch, Johnson & Johnson, 3M, Levi's, Pizza Hut, JP Morgan, Fidelity and Citigroup. Its business centric weather solutions and understanding of how consumers and equities respond to the weather is used throughout organizations to help "manage the weather risk”. Utilizing technology first developed in the early 1990s, Weather Trends International’s unique statistical math based trade secret formula forecasting methodology projects temperature, precipitation and snowfall trends by day and week a year-ahead for 4,000 cities in 129 countries with an industry leading 80%+ accuracy. Offices in New York, NY; Bethlehem PA and Bentonville, AR