Index Fund Market Impact Simulator

Aggregate Price Impact +3.85% Non-fundamental Shift

Basket Correlation Delta +0.24 Co-movement Shift

Inelastic Flow Multiplier 1.62x Gabaix-Koijen Scale

Market Disparity Index 0.41 Flow-Valuation Divergence

Constituent Liquidity Vector & Price Displacement Map

Inflow Vector

Active Buffer

Elasticity Displacer

Index Fund Market Impact Simulator — Telemetry Proof ONLINE

Inflow: $15B | Active Trader Ratio: 0.35 | Elasticity: 0.40 | Inelastic Multiplier: 1.62x | Agg Impact: +3.85%

Flow & Elasticity Parameters

Market Presets

Passive Inflow ($ Billions) $15B

Active Trader Buffer Ratio 0.35

Aggregate Price Elasticity 0.40

Index Weighting Rule

Market Cap

Equal Weight

Cross-Stock Co-Movement Matrix

Ticker	Stock A	Stock B	Stock C

Because passive index funds buy constituents mechanically regardless of fundamental value, high inelasticity forces active traders to absorb cashflows, driving prices higher and lockstep basket correlation.