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Introduction

Welcome to the War Index repository! This project aims to provide traders, investors, and analysts with a specialized financial indicator that tracks the performance of key defense and aerospace companies. By aggregating the percentage changes of selected stocks, the War Index offers insights into the defense sector's dynamics and its relationship with the broader market.

What is the War Index?

The War Index is a custom financial indicator designed to approximate the collective performance of major defense and aerospace companies. It aggregates the daily percentage changes of selected stocks within the defense sector to provide a singular metric that reflects the overall health and trends of this industry. Additionally, the index is compared against the S&P 500 (SPX) to contextualize its performance relative to the broader market.

Index Components

The War Index comprises the following 16 stocks, each representing a significant player in the defense and aerospace industries:

Lockheed Martin Corporation (LMT)

Ticker: NYSE:LMT

Lockheed Martin is a global aerospace, defense, security, and advanced technologies company. Renowned for its role in developing the F-35 fighter jet and various missile defense systems, Lockheed Martin is a cornerstone of the U.S. defense industry.

Northrop Grumman Corporation (NOC)

Ticker: NYSE:NOC

Northrop Grumman specializes in aerospace and defense technology. The company is a key player in unmanned systems, cyber, and space systems, contributing significantly to national security initiatives.

Boeing Company (BA)

Ticker: NYSE:BA

Boeing is a leading aerospace company and the world's largest manufacturer of commercial jetliners and military aircraft. Its defense division produces fighters, surveillance aircraft, and missile systems.

Raytheon Technologies Corporation (RTX)

Ticker: NYSE:RTX

Raytheon Technologies is a major defense contractor and industrial corporation. It provides advanced systems and services for commercial, military, and government customers worldwide.

General Dynamics Corporation (GD)

Ticker: NYSE:GD

General Dynamics is a global aerospace and defense company offering a broad portfolio of products and services in business aviation; combat vehicles, weapons systems, and munitions; IT services; and shipbuilding.

BAE Systems plc (BAESY)

Ticker: OTC:BAESY

BAE Systems is a British multinational defense, security, and aerospace company. It is one of the world's largest defense contractors, providing a range of products from naval ships to cybersecurity solutions.

L3Harris Technologies, Inc. (LHX)

Ticker: NYSE:LHX

L3Harris Technologies specializes in defense and other government services, focusing on surveillance solutions, communication systems, and electronic warfare technologies.

Textron Inc. (TXT)

Ticker: NYSE:TXT

Textron is a conglomerate with subsidiaries in aerospace, defense, and industrial products. It is known for brands like Bell Helicopter and Cessna, contributing to both civilian and military aviation.

Huntington Ingalls Industries, Inc. (HII)

Ticker: NYSE:HII

Huntington Ingalls is the largest military shipbuilding company in the United States. It designs, builds, and maintains ships for the U.S. Navy and Coast Guard.

Oshkosh Corporation (OSK)

Ticker: NYSE:OSK

Oshkosh Corporation manufactures specialty trucks and military vehicles. Its Defense segment provides tactical and logistical vehicles to U.S. and allied forces.

Leidos Holdings, Inc. (LDOS)

Ticker: NYSE:LDOS

Leidos is a defense, aviation, information technology, and biomedical research company. It provides scientific, engineering, systems integration, and technical services.

Kratos Defense & Security Solutions, Inc. (KTOS)

Ticker: NASDAQ:KTOS

Kratos specializes in unmanned systems, satellite communications, and cybersecurity. It delivers products and services to government and commercial customers.

Spirit AeroSystems Holdings, Inc. (SPR)

Ticker: NYSE:SPR

Spirit AeroSystems is a leading manufacturer of aerostructures for commercial and defense aircraft. It produces components like fuselages, pylons, and nacelles.

Parsons Corporation (PSN)

Ticker: NYSE:PSN

Parsons provides engineering, construction, technical, and management services. Its work includes critical infrastructure, cybersecurity, and defense systems.

CACI International Inc (CACI)

Ticker: NYSE:CACI

CACI offers information solutions and services in defense, intelligence, and federal civilian government sectors. Its expertise includes data analytics, cybersecurity, and mission support.

ViaSat, Inc. (VSAT)

Ticker: NASDAQ:VSAT

ViaSat provides high-speed satellite broadband services and secure networking systems. Its products support military communications and commercial aviation.

Purpose of the War Index

The War Index serves several key purposes:

  • Sector Performance Tracking: By aggregating the performance of major defense and aerospace companies, the index provides a clear picture of the sector's overall health.
  • Investment Analysis: Investors can use the index to identify trends, evaluate sector strength, and make informed decisions regarding their portfolios.
  • Comparative Benchmarking: Comparing the War Index with broader market indices like the S&P 500 helps in understanding how the defense sector performs relative to the general market.

Comparison with the S&P 500

The War Index is plotted alongside the S&P 500 (SPX) to offer a comparative analysis between the defense sector and the broader market. This comparison highlights the relative performance, volatility, and growth trends, enabling users to assess whether the defense sector is outperforming or underperforming in the current economic climate.

Usage

The War Index is implemented as a Pine Script™ indicator for TradingView, allowing users to:

  • Visualize Sector Performance: Overlay the War Index on charts to see how the defense sector is moving over time.
  • Analyze Trends: Identify upward or downward trends within the defense sector and compare them with the S&P 500.
  • Backtesting: Utilize the built-in backtesting features to evaluate the historical performance of the War Index.

License

This project is licensed under the Mozilla Public License 2.0. See the LICENSE file for details.

Contributing

Contributions are welcome! If you have suggestions, improvements, or bug fixes, please open an issue or submit a pull request. Please ensure that your contributions adhere to the project's licensing terms.


Disclaimer: This War Index is an approximated indicator intended for informational purposes only. It should not be construed as investment advice. Always conduct your own research or consult with a financial advisor before making investment decisions.

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