Composite Score
Composite Score is a proprietary quantitative metric designed to measure short-term price behavior relative to recent historical levels.
Each trading day, the model evaluates how a security’s latest closing price compares to predefined short-term reference levels.
The output is expressed as a single numerical value.
Model Framework
At a high level, Composite Score evaluates:
- The relationship between current price and recent price averages
- Relative positioning across short-term time intervals
- The degree of separation between current pricing and recent history
These calculations are rule-based and systematic.
Interpretation
Composite Score is expressed as a positive, zero, or negative value.
- Higher values indicate stronger short-term price separation relative to recent averages.
- Lower or negative values indicate weaker short-term price positioning relative to recent averages.
The metric is comparative in nature and is primarily used for ranking securities within the defined universe.
Composite Score does not predict future price performance and should not be interpreted as a recommendation to buy, sell, or hold any security.
Purpose Within MarketQuants
Composite Score enables:
- Cross-sectional comparison across multiple securities.
- Systematic ranking based on predefined model criteria.
- Consistent measurement of short-term price behavior.
The metric is descriptive of current conditions and updates daily based on new market data.
Important Note
All market investments involve risk. Composite Score reflects historical and current price relationships only. Past performance and model outputs do not guarantee future results.