The latest update to our platform adds three powerful new statistical calculations: Relative Average, Alpha, and Beta for each indicator across the S&P 500. These new metrics provide traders with deeper insights into market behavior and allow for a more nuanced understanding of indicator performance.
Key Features of the Latest Release:
- Relative Average Calculation: The relative average gives you a clearer picture of how an indicator performs by subtracting the unconditional average from the conditional average. This calculation helps traders see how much an indicator’s performance deviates from its normal behavior, without the noise of momentum effects. It’s especially useful for understanding performance adjustments in stocks that may have large unconditional averages, stripping away the skew from raw conditional values.
- Alpha and Beta Specific to Indicator Conditions: We’ve brought in alpha and beta calculations, widely used in stock performance analysis, and tailored them to indicator conditions.
- Beta shows the sensitivity of an indicator to broader market movements, using the S&P 500 as the benchmark. It helps traders understand how much an indicator’s performance is linked to market volatility under similar conditions.
- Alpha measures the excess returns of the indicator in those same conditions, showing how much better or worse the indicator performs compared to the market.
What makes these calculations unique is that they are specific to the current condition of the indicator. Traders can now see how an indicator’s alpha and beta compare when it has had similar conditions in the past.
A Step Forward in Market Research for Retail Traders
These new calculations reflect our ongoing commitment to providing the best market research for retail traders. By focusing on condition-specific insights, we enable traders to make more informed decisions based on historical market behavior.
Explore these new tools today and enhance your trading strategy with cutting-edge research!