What is Stock Advisor?Generally speaking, a stock advisor enables investors to use statistical models to find the right mix of equity instrument to add to your existing portfolios or to create a brand new portfolio that will be optimized against your current preferences regarding risk and expected return. After you succesfully build an intitial portfolio, the Macroaxis wealth optimization framework will enable you to generate an optimal portfolio that will significantly reduce systematic risk while automatically enhancing your risk-adjusted returns over a long period of time. For many companies with rapid growth, such as the one we observed between 2016 to 2020, the future stock price is unpredictable. To time this market properly is virtually impossible as there is no text-book formula that could account for what the future value of a company is based on public anticipation of its future growth. Most of the Macroaxis Stock Advisor modules provide a basic methodology to categorize the investment universe based on risk (standard deviation of daily returns) and expected return, and then choosing the mix of investments that achieves the desired risk-return tradeoff. In this context, the Macroaxis Stock Advisor is a simple add-on to its robust portfolio optimization framework that enables investors to optimize portfolios that have a mix of equities spread out across most conventional assets (such as stocks, funds, or ETFs) and cryptocurrencies (such as Bitcoin, Ethereum or Monero)
|Stocks||Shares of ownership issued by a publicly traded corporation. These shares are usually traded on stock exchanges and conform to government regulations which are meant to protect investors from fraudulent practices|
|Funds||Financial instruments that are backed up by a pool of investments in different types of securities such as stocks, bonds, money market instruments, and mutual funds. Most funds use strategies that allow investors to pool money together with other investors to purchase a collection of instruments with different characteristics|
|ETFs||Financial instruments that are similar to funds in their composition but differ in a way their prices are adjusted. Unlike funds, ETFs are traded on the exchanges throughout the day just like stocks|
|Cryptos||An internet-based asset that uses blockchain technology and cryptographical functions to conduct financial transactions. The main difference between cryptocurrency and traditional equity instruments or currencies is that cryptocurrencies use decentralized control and are independent of central banking systems.|
|Bonds||Fixed income securities issued by corporations, governments, or other organizations and sold to investors in different markets. Bonds pay regular interest and have different features than stocks, funds, ETFs or cryptocurrencies.|
Many investors optimize their portfolios to maintain a risk-return balance that meets their personal investing preferences and liquidity needs. To do this, they must regularly rebalance their portfolios to make sure they are not deviating from their practices; and this is where Macroaxis Stock Advisor adds values and an unprecedented amount of functionalities. Below are the essential modules that can be used to build a reliable input to start the portfolio optimization process quickly. These tools can help investors not only to enhance there current risk-adjusted returns but also to secure it into the future.
Stock Advisor Tools
|Equities Terminal Launch The Equities Terminal is a collection of modules for individual equity research and analysis. You can examine different market driven as well as company specific characteristics using powerful cross-assets modules such as watch-list analyzer, correlation inspector, opportunity browser, portfolio optimizer, and many other powerful tools.|
|Probability Of Bankruptcy Launch We define the Probability Of Bankruptcy as a degree of financial distress - a condition where a company is having difficulty to meet its current financial obligations towards its creditors or to deliver on the expectations of its investors. Macroaxis derives these conditions on a daily bases from both public financial statements as well as analysis of stock prices reacting to market conditions or economic downturns, including short term and long term historical volatility.|
|Piotroski F Score Launch This module uses fundamental data of public entity to approximate its Piotroski F score. The F Score is determined by combining nine binary scores representing 3 distinct fundamental categories of a company. These three categories are profitability, efficiency, and funding. Some research analysts and sophisticated value traders use Piotroski F Score to find opportunities outside of the conventional market research and financial statement analysis.|
|Altman Z-Score Launch Altman Z Score is one of the simplest fundamental models to determine how likely your company is to fail. The module uses available fundamental data of given equity to approximate the Altman Z score. Altman Z Score is determined by evaluating five fundamental price points available from the company's current public disclosure documents.|
|Correlation Inspector Launch Correlation Inspector is one of the fundamental tools of the Stock Advisor sets of modules. It finds correlations between the returns of each asset in the specified portfolio against every other asset it contains. It constructs a conventional correlation table with color-coded cells, identifying the highest and lowest values, as well as values that fall within 1, 2, and 3 standard deviations from 0.|
|Volatility Inspector Launch Before comparing or considering investments, it is better to perform a risk-adjusted return calculation that will adjust the returns according to how risky the investments are. The riskier they are, the more the returns are lowered before any comparison. Technically risk refers to mean volatility, which measures how returns vary over a given period of time. An investment or a portfolio that grows steadily has low risk, and another investment with a value that jumps up and down unpredictably has high risk.|
|Performance Analyzer Launch Performance Analyzer runs balanced, risk-adjusted comparisons between different assets. It uses two commonly used performance indicators - Sharpe and Treynor. The Treynor Measure takes into account systematic risk, whereas the Sharpe Ratio uses volatility. Assets with higher performance ratios should be preferred to assets with lower performance.|
|Quick Portfolio Optimizer Launch Portfolio Optimizer evaluates the One-Day Value At Risk of the optimal portfolio along with total risk, expected return, and several common performance measures. The result is compared to your existing portfolio. The main objective, as a rational investor, is to outperform the existing portfolio in all five categories.|
|Portfolio Rebalancer Launch Rebalancing is simply the process of buying and selling portions of your existing portfolio after an investment strategy or tolerance for risk has changed, or if market conditions have changed. By using the Macroaxis Wealth Optimization Toolset, investors can adjust the weight of each asset in the portfolio to satisfy a newly devised asset allocation.|
|Stock Ratings Launch We provide instant equity rating based on a combination of real-time fundamental analysis and risk-adjusted market performance. The results are broken down into six separate categories that are weighted to derive a horizon-based digital recommendation. The six categories are Volatility, Hype Condition, Valuation, Analyst Consensus, Financial Leverage, and Odds of Distress. Every category can also be evaluated separately to get more details.|
|Equity Comparator Launch You can use the Comparative Equity Analysis module to analyze the advantages of investing in your portfolio's related equities across multiple sectors and thematic ideas. Please use the input box below to enter symbols for particular investments you would like to analyze. With the equity comparison module, you can estimate the relative effect of your traded assets competition on your existing holdings.|
|Pair Correlation Launch A pairs correlation concept is typically used in trading two securities based on their historical correlations. The equity instruments in a pair trade should have a high positive correlation, which is the main assumption driver behind the strategy's profits. An investment strategy based on pair correlation works best when you find some correlation discrepancy by analyzing the historical daily returns using other module within the Stock Advisor toolset.|
|Technical Analysis Launch Technical analysis uses different types of financial models and trading rules that are typically based on price movement or volume patterns. It involves analyzing varying price or return indicators such as moving averages, regressions, momentum analyzers, correlations, chart patterns, and many others|
|Fundamental Analysis Launch Fundamentalists look at the big picture and then zoom in to smaller details in an effort to determine if a stock is valued correctly at the current price. When the market price doesn't reflect the real value or potential value of a stock, its price is bound to go up in the future|
How do you predict if the stock price will go up or down? This is a question that every stock investor asks. For most individuals, especially beginners, this is a very complex question. For some people, stock's price goes down more than it goes up. This is because they don't know how to predict if the price will go down or up. For your information, it is possible to make an accurate stock market prediction. It is possible to determine the future value of an organization's stock or any other financial instrument traded on the stock exchange market. If you make a successful prediction of a stock's future price, it can yield substantial profit.
How Do You Predict a Stock's Future Price?If you are asking this question, you are not alone. Even experts in the stock market face a similar dilemma each day. However, stock price movement is speculative. For instance, it is likely to go up if there are more buyers and drop when there are more sellers. What does this mean? You can use available information to make an accurate prediction. Here are three techniques that most financial analysts and traders use:
1. Machine LearningAs identified by Data Flair, predicting how the stock market will perform involves many things, including: Physical Factors Physiological Factors Rational Behavior Irrational Behavior All these factors make share prices not only volatile but also difficult to predict. However, the use of machine learning has been a game-changer in the recent past. With increased computational capabilities and artificial intelligence, financial analysts utilize programmed methods that are accurate and more efficient in predicting stock prices. Have you ever heard about artificial neural networks (ANNs)? It is a modern tool that uses AI for stock price prediction. In most instances, analysts use joint and independent approaches to forecast different time horizons. When using the independent approach, traders utilize a single ANN for a specific time horizon, for instance, one day, two days, or one week. For every time horizon, data about stock movement is collected and analyzed by ANNs. Each time horizon is unique, significantly reducing the error margin. On the other hand, the joint approach observes the stock performance for multiple time horizons. Since they are determined simultaneously, the error margin is enormous. The error made in one horizon affects the other.
2. Technical AnalysisIf you use this technique, you anticipate what other stockholders are thinking based on available information about volumes and the stock price. You use indicators calculated from the history of stock volume and price to predict future prices. In simple terms, technical analysis focuses on trends. Analysts believe that stock movements are caused by differences in demand and supply of stocks. Thus, they analyze stock charts to extract vital patterns in determining if a stock price will drop or rise. Apart from patterns, financial analysts and traders may apply several techniques, such as exponential moving average, support and resistance levels, momentum and volume indicators, and oscillators. Since this method is based on patterns, it makes several assumptions. First, there is an assumption that stock prices move in trends. Secondly, it is assumed that the history of stock prices always repeats itself.
It is no doubt that the stock market is among the primary economic driver in any country with stock market data being the most analyzed financial data over the past five decades. A myriad of techniques surrounding what moves the stock markets have great successes in predicting stock market movements. For every potential investor, whether a beginner or expert, stock price movement is the inherent factor that sparks whether it is viable to invest in a particular stock. With the stock market evolution over decades, stock price forecasting has revolutionized from being conviction-based to being more analytically based. Technical analysis has embraced various forecasting tools and methods to help the daily trader predict stock prices. With the complexity of stock price movements and the simple question of whether the stock price will go up or down, a comprehensive understanding of forecasting methods that an investor can rely on to make the right move is invaluable. These methods predict trends that assist an investor in predicting the movement of the stock price.
Moving Average MethodThe stock market price charts are filled with many 'noises.' These noises can hugely alter the decision one can make on a stock asset. The Moving Average helps filter out the noise by identifying the stock price trend. On a stock price chart, if the price angles above the moving average line, this is a signal that the stock price is going upwards. When the price angles below the moving middle line, it signifies the stock price is going down. Different moving average methods can aid in forecasting the movement of stock prices. As an investor based on your preferred trading strategy, which can range from daily or monthly, one can utilize moving averaging methods from 50 days, 100 days to 200 days to show support and resistance levels. Moving average acts as a support when averaged stock price acts as a floor in an uptrend and like a ceiling in a downtrend. To better time the market, investors may use the different moving averages ranging from simple moving average to exponential moving average to forecast the stock price on different timelines.
Fibonacci RetracementThe Fibonacci retracement is a robust stock forecasting method used by investors. The Fibonacci retracement method assumes that the stock price of an asset retraces to specific percentage values. The known percentages are mostly 38.2%, 50%, and 61.8%. A trading software plots a Fibonacci retracement line on the stock price chart where it retraces from the peak price. The trading software will give indications on the retracement to the percentages. When the price retraces to the 38.2 % level, this acts to support it, and it signals a projected rise in the stock price. With this indication, one can purchase the stock price as it will rise. If the prices go below the 38.2% level, the forecasting can be done effectively by waiting for a retracement to the 50% level, which will act as the new support and can be used to forecast the price movement.
Relative Strength Index(RSI)The RSI helps forecast the direction of stock price by giving indications on the volume level of whether a stock is overbought or oversold. It shows the comparison of the extent of gains to the extent of losses. RSI is shown as a range of 0-100. If the RSI is above 70, the stock asset is considered to be overbought, showing the expected drop of a stock price. An RSI of less than 30 shows an oversold stock asset, and thus the indication forecasts an expected rise in stock price.
Moving Average Convergence Divergence(MACD)This is a valuable tool for investors to forecast stock prices and make a good move on the market. It consists of two lines, fast and slow. The lines are exponential moving average lines, with the fast one being the difference between the 26-day exponential moving average and the 12-day exponential moving average. The slow line is the nine-day moving average. The crossing of the lines is the signal that aids investors in determining the direction of the stock price. When the fast line crosses above the slow line, it signals the stock price going upwards. Similarly, when the slow line crosses above the fast line, it indicates the stock price going downwards.
3. Fundamental AnalysisFinancial analysts and traders who use this technique examine economic factors that affect a stock's price. In most cases, they determine if a company's stock price will fall or rise based on two things: The income statement Balance sheet The balance sheet provides essential information about a firm's liabilities, assets, and shareholder equity. By looking at it, an investor can determine its financial health and predict its performance in the stock market. The financial statement provides a brief overview of the company's performance. It highlights vital information about its expenses, revenue, and profit or loss, which is also crucial information in predicting the organization's stock price. Nonetheless, these two reports are released periodically. Thus, they can only be used when making long-term projections about price movements
Why Stock Advisor is Essential to Building Optimal PortfoliosThe recent financial crises taught investors an important lesson: diversification matters.
A stock market crash caused by coronavirus pandemic created a stock bursting effect, as many unprepared and uninsured investors lost their fortunes as quickly as they acquired them just a few months earlier. Many investors are now drastically reconsidering their
investment habits, as well as asset allocation principles and, are turning to a more educated
approach to diversification and market risk management.
Most of the Macroaxis Stock Advisor modules use statistical models to create a solid input for manufacting efficient portfolios based on market risk reduction through examining of asset correlation and mean-variance optimization. Our implementation of Modern Portfolio Theory (MPT) is based on simplicity, speed, accessibility, and enhanced user experience, making technology that was once accessible only to professional money managers available to the entire investing community.