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
W | Wayfair | Company |
WAFDP | Washington Federal | Company |
WPFH | World Poker Fund | Company |
WEA | Western Asset Premier | ETF |
W5000 | Wilshire 5000 Total | Index |
WXT | WXT | Cryptocurrency |
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 Ideas
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 Sync Your Broker Now
Sync Your BrokerSync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. |
All Next | Launch Module |
Other Complementary Tools
Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
Fundamental Analysis View fundamental data based on most recent published financial statements | |
Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
Stocks Directory Find actively traded stocks across global markets | |
Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |