Z Score
Asset symbol is not found or was delisted
Indicator Description
Z Score | = | Sum Of | | 5 Factors |
Z Score In A Nutshell
A Z Score is a data point that serves many purposes and one of them is to determine the probability of a bankruptcy within the next 24 months. With this, there are 5 different data points that are used in the equation and are weight according to an algorithm by Professor Edward Altman.
When looking at a potential investment, it is important to weigh as many important factors as you can. From cash flow, to revenue, all the way to probability of a bankruptcy, these are important data points that can factor into your decision making.
Closer Look at Z Score
Another way to use the Z Score is looking at the mean of your data set. The Z Score can be both positive and negative, giving you an answer that is quantifiable. Using the Z Score is also used in connection with standard deviation and that is a powerful tool in the investing and trading world.
Either way you decide to use this data point, it is important to understand what you are using it for and why. You can use it in relation with standard deviation or use it in relation to the health of the company you a researching. Company health is key because you are looking to make money over the long term and not have to worry about the performance of the company.
This is where joining an investment or trading community would be a great way to see how other people may be using this in their current trading and investing situations. An investing professional will also know how to use this so if you get stick you can reach out to them. Statistics in trading and investing can give you a good direction of where the market is going and if it is in your best interest to invest.
You also have to look at the chart and understand the human element because the Z Score may ignore that element and it is just as important. If the market is scared and the company is doing well, the stock may still drop in price and you have to identify that in your research. Overall, this is a great tool to use in your analysis of a company but be sure to open a demo account and test it there to ensure it fits your current method.
Other Suggestions
ASP | American Strategicome Portfolio | Company |
ASPZ | Asia Pptys | Company |
ASPGX | Astor Star Fund | Mutual Fund |
ASPY | ASPY | ETF |
Analyzing currently trending equities could be an opportunity to develop a better portfolio based on different market momentums that they can trigger. Utilizing the top trending stocks is also useful when creating a market-neutral strategy or pair trading technique involving a short or a long position in a currently trending equity.
Explore Investing Opportunities
You can quickly originate your optimal portfoio using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did you try this?
Run Volatility Analysis Now
Volatility AnalysisGet historical volatility and risk analysis based on latest market data |
All Next | Launch Module |
Other Complementary Tools
Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |