Technical reference for the Kavim Art Index. May 2026.
The Kavim Art Index (KAI) is a composite readability score measuring the current state of the art market across three independent dimensions: momentum, liquidity depth, and participation breadth. Each dimension is computed from transaction-level data covering primary and secondary market activity across a defined universe of artists and works. The three component scores are combined into a single index value ranging from 0 to 100, where higher values indicate a more readable, liquid, and broadly active market.
KAI is not a price index. It does not track auction hammer prices, estimate portfolio values, or predict future market direction. It measures the structural quality of current market conditions as observable from verified transaction data.
The KAI is computed across a coverage universe of 120 blue-chip artists in active coverage as of May 2026. Artists are selected based on sustained secondary market activity, verifiable transaction anchors, and institutional relevance. The universe is reviewed periodically; additions and removals are documented in the coverage changelog.
The three components are independently scored on a 0–100 scale and combined using a weighted aggregation function. The weights reflect the relative information content of each dimension in characterising art market conditions.
Measures the directional consistency of price movement across the tracked universe over a rolling 90-day window. A high MOM score indicates that a majority of artists are trending in the same direction, suggesting a coherent market signal rather than noise. MOM is computed from verified transaction anchors; estimated or dealer-reported prices are excluded.
Reflects the ease with which works can be transacted at or near their estimated fair value. It accounts for bid-ask spread proxies, time-to-sale, and the ratio of unsold lots to total offered within the measurement period. A low LIQ score indicates thin or fragmented liquidity conditions. Artists with fewer than three verified sales in the rolling window are classified as Low Liquidity.
Tracks the proportion of the covered universe that recorded at least one transaction within the measurement period. A high BRD score indicates broad market participation rather than activity concentrated in a small number of names. BRD is sensitive to seasonal auction cycles and is normalised against historical participation rates.
The three components are combined using a proprietary weighted aggregation function that applies a divergence penalty when the three signals are misaligned. A market that is momentous but illiquid, or liquid but narrow, scores lower than one where all three signals are aligned. The penalty is proportional to the pairwise variance between component scores and is bounded to prevent excessive dampening in transitional market conditions.
The resulting KAI score is mapped to one of four named regimes based on score thresholds and recent trajectory. Regime labels are intended as orientation, not prediction. A regime change requires the score to cross a threshold and remain above or below it for a minimum of two consecutive weekly snapshots.
Broad participation, strong momentum, and adequate liquidity. Market conditions are structurally favourable for allocation activity. Evidence quality is generally high across the coverage universe.
Mixed signals across dimensions. Momentum or breadth may be present but not fully supported by liquidity depth, or vice versa. Allocation activity is possible but requires higher selectivity and stronger position-level evidence.
Deteriorating conditions across at least two dimensions. Liquidity is thinning, participation is narrowing, or momentum is reversing. Defensive posture is warranted. New allocations require exceptional evidence quality.
Severe dislocation. Market conditions are structurally impaired. Liquidity is absent or unreliable across large portions of the coverage universe. Allocation activity is not supported by available evidence.
The KAI is a market reading tool, not a valuation instrument. It does not produce price estimates, appraisals, or investment recommendations. The index reflects conditions observable from verified transaction data; it cannot account for private sales, undisclosed transactions, or dealer-held inventory.
The KAI is designed to support structured allocation documentation and due diligence processes. It is not a substitute for independent professional advice. Users are responsible for their own allocation decisions. Nothing in this methodology document, or in any output produced by the Kavim platform, constitutes investment advice, financial advice, or a solicitation to buy or sell any asset.