In each map, census tracts are shaded based upon their divergence index score.12 Each map also contains a pie chart indicating the racial breakdown of the larger geography presented.
They found that a fund's performance was correlated more to its divergence index than to its size.
We also provide the divergence index calculations by census tract to facilitate applied research using our data.
Over the 16 years studied, the funds with the highest divergence index readings -- those with the least diversification -- produced the greatest average returns.
For a primer on this Index and how it is calculated, see Elizabeth Roberto, "The Divergence Index: A Decomposable Measure of Segregation and Inequality," Working Paper, December 2016, https://arxiv.org/abs/1508.01167.
We provide an elegant characterization of this condition in terms of divergence index between pairs of customers, which states that the divergence index must be less than one for FBS to be implementable.
I measure segregation using the Divergence Index, which evaluates how surprising the composition of each local environment is given the overall population composition.
We will weigh their advantages and disadvantages, and explain why we settled on the Divergence Index as the best measure for the Bay Area.
The measure of segregation we have employed here, the Divergence Index, helps us identify areas that are segregated despite a high degree of overall diversity.
The threshold value for census tracts in those 6 counties designated as "highly segregated" is a divergence index score equal to or greater than 0.215.
For each of the nearly 1,800 funds in the study, the researchers calculated what they called a divergence index, based on the fund's concentrations in 10 broad industry groupings, relative to the overall market.
