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Expected Ratio

The alerts server often compares a stock to the futures or another stock.  Based on historical data, some stocks typically move up and down at the same time as the futures.  However, they don't always move the same amount.  The expected ratio is the number of dollars that the stock in question is expected to move, each time the futures or other stock moves one dollar.

For example, assume the historical background information for a stock says that the stock has an expected ratio of .57 relative to the futures.  Assume that the futures go down $1.  At the same time, we'd expect the stock in question to go down by 57 cents.

The expected ratio is based on the slope or "m" parameter found in linear regression formulas.

Alert Types

We offer the following alert types which are related to this topic.  Click on the icon for a detailed description of the alert, or click on the "more" link for additional examples of each type of alert.

Type Recent Examples More Examples
Time (NY) Symbol Message
Sector breakout (from open)May 16th, 6:52:26 PMFTETrading 2% Above expectations based on EWGmore
Sector breakdown (from open)May 16th, 6:00:53 PMARCCTrading 3% Below expectations based on XLFmore
Sector breakout (from close)May 16th, 6:52:26 PMFTETrading 1% Above expectations based on EWGmore
Sector breakdown (from close)May 16th, 6:00:53 PMARCCTrading 2% Below expectations based on XLFmore
Positive market divergenceMay 16th, 6:44:53 PMPWRDTrading 5% Above expectations based on QQQQmore
Negative market divergenceMay 16th, 6:00:53 PMARCCTrading 3% Below expectations based on QQQQmore

See Also

Alerts Server, Futures, Linear Regression

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