Unknown Indicator
Simple Regression In A Nutshell
Using regression can allow you to implement a trading and investing style that is based on reversion of the mean. If you are unfamiliar with standard deviation, head over to that informational section of the site and become familiar, as this will make more sense after. Simple regression will allow you to identify when an equity is far from the mean, standard deviation wise, giving you an idea of when the stock may revert back to the mean.
There are many different ways to come up with data points, and simple regression is another one of those. This type of tool would fall under both, quantitative and technical analysis. Simple regression looks to eliminate the human element and give you a statistical regression data point you help you identify trading situations.
Closer Look at Simple Regression
Some of the perks of using this particular data set is that it will eliminate the human element, giving you statistical data that is concrete and certain. Keeping emotion out of trading is one way to potentially give yourself an edge. Another perk is that this type of investing and trading will hopefully give you an edge in trend trading, allowing you to spot when the market is slightly over bought or over sold.
However, with any trading tool there are negatives to keep in mind. First, you have to understand that there will always be a human element to trading and investing, and by eliminating all of it, it could hurt your data outcomes. Find the happy medium and tweak it to what will fit your trading style best. Secondly, mean reversion does not always work, just with an trading style, so using a simple regression mind set could prove to be unprofitable.
With any trading idea, you should throw it on a demo account and find out if it is exactly what you are a looking for. Tweak time frames and other limitations to have it fit your current needs. If you get stuck, reach out to an investing community and they can certainly help you fine tune your charts. Once you feel comfortable, take it step further and integrate it with other tools to see if you can find a edge to increase your returns. Again, this is a great data set to use with mean reversion and is worth your time if you believe in that market philosophy.
Other Indicators
All Technical Analysis
Trending Themes
If you are a self-driven investor, you will appreciate our idea-generating investing themes. Our themes help you align your investments inspirations with your core values and are essential building blocks of your portfolios. A typical investing theme is an unweighted collection of up to 20 funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of equities with common characteristics such as industry and growth potential, volatility, or market segment. | ESG Investing Invested few shares | |
 | FinTech Invested over 30 shares | |
 | Driverless Cars Invested over 60 shares | |
 | Banking Invested over 30 shares | |
 | Adviser Favorites Invested few shares | |
 | Baby Boomer Prospects Invested over 60 shares | |
 | Hedge Favorites Invested over 60 shares | |
 | Cash Cows Invested few shares | |
 | Momentum Invested over 300 shares | |
 | Dividend Beast Invested over 60 shares | |
 | Chemicals Invested over 30 shares | |
 | Giant Impact Invested over 20 shares |
Other Complementary Tools
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas |