Math

Logarithmic ROUNDING (Scaled by 1000)
RELATIVE LOG SCALE (BASE 10 & 2)
Time To Multiply
COMBINING INDICATORS

COMBINING INDICATORS

작성자
  • Jose_Henrique
작성시각

Motivation

Do you wanna buy a share with high growth or low valuation or high growth and low valuation?

Description

Eventually, we desire to compound an investment portfolio based on two or more quantitative indicators.
In this case, we can combine these indicators (or maybe their ranks) to create a new one and rank the best choices.
This combination can be linear (simple mean) or geometric (geo mean).
When it's a linear, both indicators can result a higher value easier. But on gometic formula, both must have a high value to produce another high value.

Formulas

Linear combination = (X + Y) * (1/2)
Geometric combination = (X + Y)^(1/2)
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