Now that we have a recent Stockrank movers table it should be possible to use this data to estimate the likely change in value of a company relative to its recent past (and possibly with Q and M Ranks) its future performance. A bucket of significantly upgraded companies could be assembled over a period of say 3 months to form a "Stockrank upgrade" portfolio from diversified sectors.
The question then is at what increase in ranking score and/or ranking score (90+) is likely to trigger a "significant" share price upswing? Does an increase in one composite metric (V, M or Q) carry more weight than another? Views on upgrade scoring selection criteria please? Ian
From experience of using these type of models they are best viewed and used in a portfolio context. Looking at the performance of the Stock ranks so far it seems that >50 scores have out performed & < 50 scores have underperformed. So a simple rule would be to look out for stocks crossing the 50 line although you can't do that as the movers is offered only in quintiles, any chance of getting deciles in there Ed given the 50/50 performance split?
When constructing a portfolio, if you are using or following the Stock Ranks, you would want to make sure your holdings are concentrated in say the top 2 quintiles while avoiding the bottom two quintiles - the 40 to 60 region would be a grey / watch area for existing and new holdings. Often avoiding the losers is more important than picking the winners so if you find yourself holding a low scoring stock it should at least prompt you to ask yourself why?
Not sure this completely addresses your original question but it is the way I think about the Stock Ranks and their changes, hope it helps.
