Quick thought for our valued readers. Today we are running data for a year through Sept 14. We run all the stocks in the NYSE American (pretty risky exchange), and we found the individually best stock according to their CQNS score. In fact, we score every stock.
1) The best portfolio score we found has three stocks. Two stocks did better than one (power of diversification and negative correlation), and three stocks did better than two (but included the two stocks).
4) The best scoring four stock portfolio was worse than the best three stock portfolio. So, this is the limit of diversification for these specific stocks during this particular timeframe.
So, in this case, a three-stock portfolio has the minimum CQNS score, and best parameters.
We might buy a very small position in these three stocks tomorrow (equally weighted) and maybe pay for dinner and a movie. If we do, we will update the blogpost.
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Non-discretionary investment advice. You pay a fixed price for the analysis (or subscription), and you make and control your investments.