Unexpected Climate News Innovation (UCNI) Index

Definition 

The unexpected climate news index (UCNI) is a metric used to capture the unexpected component of daily changes in climate change news. It is derived by assuming an auto-regressive AR(1) process for the climate news indices (CNI), where the changes in unexpected climate change news represent the innovations. The UCNI provides a tool for understanding and quantifying the influence of unexpected climate news on equity portfolios, thereby aiding investors and industry professionals in making informed decisions.