A remote-sensing index that measures vegetation health from red and near-infrared light - a proxy for crop condition and yield.
The Normalized Difference Vegetation Index is a simple, powerful ratio computed from two bands of satellite data: healthy plants strongly absorb red light and strongly reflect near-infrared, so the normalized difference between those reflectances tracks how green and vigorous vegetation is. It produces a value that maps cleanly to plant health across a field or a whole growing region.
For alternative data, NDVI is a workhorse for agriculture: tracking crop condition through a season gives an early, physical read on yield well before official production estimates, which informs views on soft commodities and the companies exposed to them. It is a clean example of the pattern behind satellite data generally - a physics-based measurement of the ground, turned into a timely economic signal.
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