Overview of Quadrix
Quadrix is a robust stock rating system designed and maintained by Horizon Publishing Company. It intricately analyses stocks by employing over 90 different variables spread out over seven critical categories: momentum, quality, value, financial strength, earnings estimates, performance, and reversion. The system assigns a composite score to each stock based on a weighted average of these variables, offering investors a multifaceted view of potential investments.
Developed by Rich Moroney, Horizon Investment Services’ Chief Investment Officer, Quadrix has been illuminating the stock market with its detailed assessments since 2000.
How Quadrix Works
As an advanced stock evaluation tool, Quadrix rates stocks on a spectrum of variable scores categorized into momentum, quality, value, financial strength, forecasted earnings, performance, and reversion. Designed to sift through a universe of over 4,000 stocks, this system aids investors in narrowing down their options to more viable stocks. Unlike many modern robo-advisors, Quadrix doesn’t build portfolios based on risk assessment per Modern Portfolio Theory but rather focuses on stock-specific evaluation.
Practical Applications of Quadrix
Primarily utilized by Horizon Publishing for internal stock screening and client advisories, Quadrix is also available to subscribers of Horizon’s newsletter products. It serves as an initial stock screen in portfolio building but isn’t meant to guide risk assessment or portfolio weight based on theoretical modeling.
Related Terms
- Momentum: A measure of stock price movement and velocity aimed at gauging future trends.
- Value Investing: An investment strategy focusing on undervalued stocks of companies with solid fundamentals.
- Financial Strength: An evaluation of a company’s financial stability and health.
- Earnings Estimates: Analyst forecasts on a company’s future earnings, often influencing stock prices.
- Performance Metrics: Various parameters, such as ROI, used to judge a company’s operational efficiency.
Recommended Reading
- “The Intelligent Investor” by Benjamin Graham - A seminal book in understanding value investing and fundamental analysis.
- “Security Analysis” by Benjamin Graham and David Dodd - Provides an extensive framework for assessing the value and potential of stocks.
In essence, Quadrix might just be the crucial telescope you need to spotlight stars in the vast cosmos of the stock marketplace—more than just numbers, it’s your financial astral journey’s co-pilot! So before you set sail in the tumultuous seas of stock investment, it might be wise to consult this celestial chart. 🌌📈
