We Perform Quantitative Analysis on 4,000 US-Listed Stocks
- We are a Highland Park, Illinois investment advisor.
- Jeffrey Cohen is our investment advisor representative.
- The Chicago Quantum Net Score (CQNS) is our proprietary algorithm and platform.
Phone: (312) 515-7333 (Monday - Friday, 8am - 5pm, appointments available by appointment)
Working from our home office in Highland Park, Illinois
Since we made this video we have taken steps to to define and test our own portfolio management approach).
What is an 'up run' or efficient portfolio?
- It identifies a portfolio of stocks that may out-perform a market index while demonstrating lower price volatility.
- These portfolios have less price volatility and more expected return than other portfolios.
What is a 'down run' or inefficient portfolio?
- It identifies a set of stocks that may decline in price more quickly than a market index while demonstrating higher price volatility.
- These portfolios have more price volatility and less expected return than other portfolios.
Our research is based on a proprietary quantitative algorithm (derived from the Sharpe Ratio), analysis model and a high-performance platform that we run both classically and on quantum annealing computers. Our Chicago Quantum Net Score algorithm was originally designed to run on quantum computers.
Our primary service is a daily US composite stock analysis
We score individual common stocks on multiple dimensions. Our main score is its efficiency, or how a stock’s expected return compares to its daily price volatility.
- A stock with minimum risk and maximum expected return is efficient, and investors prefer maximizing returns while minimizing risks. We hold ourselves to a high standard, to identify portfolios better (or significantly worse) than a commonly referenced 500-stock index.
- A stock with maximum risk and minimum expected return is inefficient, and will likely have more chop or movement than overall direction. These stocks also tend to decline rapidly once they make the list.
- Sometimes these stocks move very quickly and aggressively as the market detects and corrects for these pockets of smart, or dumb volatility.
- Traditional measures like dividend yields, stock splits, anomalous volume and price spikes can tell us about a stock’s history and help build the story for a stock.
- We assess skewness, which measures the daily price move bias (or asymmetry). Skewness tells us whether a typical day over the past year had the stock advancing or declining.
- We assess kurtosis, which measures whether the stock has made unexpectedly large daily price moves, either up or down, while generally being low variance. Does the stock surprise investors more than normally?
- We measure the BETA score against the index, which indicates the systematic risk in a stock, or how it moves with the market, and is a factor in determining expected ‘future’ returns.
We find multiple-stock portfolios, equally weighted, which either maximize or minimize their efficiency as a portfolio. This is data rich and computationally intensive (takes hours on our powerful desktop servers), and was the reason for developing a quantum computing algorithm.
Our services are delivered via a written management report and spreadsheet of our analysis findings. They include the information contained in the two tables below.
- We created a repeatable, scalable analytic service that we run, analyze and improve. Over time we better serve our clients. We keep growing our data input sizes and platform effectiveness. We learn from our successes and our failures. We grow our expertise in the US equities markets.
- This algorithm is free from emotion. This is a fact-based analysis, run repeatedly. The stocks selected change over time. We believe the underlying 'math' in the market creates creates consistently high-performing portfolios.
- Finally, this is a proprietary algorithm run on an in-house technology platform that uses professional market data services. You get the benefit of those investments and expenses.
Monthly membership
Subscribe to our monthly membership service to support our business. Receive analysis and insights, videos and written reports, packaged from across our social media and website platforms. We will provide a monthly summary with hyperlinks.
We will share what we observe in our stock analysis and from market analysis. We are open to member requests.
As an example, we run our daily US Composite Stock Market Analysis and will share insights with our members from a recent run.
We will highlight key youtube videos we published.
These are currently live-streamed on YouTube, but we may create custom content for our Members. We are still learning how to edit videos...that could provide opportunities for us to share more targeted content.
To thank our members for their support and engagement, we include one monthly call with Jeffrey Cohen. During this 30 minute call you may ask questions and discuss investments, current events, monetary policy, or other topics of interest.
US Composite, stock market analysis (Up run)
This service identifies efficient stocks portfolios to hold that have lower historical price volatility and higher expected returns than a passive index fund?
CQNS UP is a quantitative analysis of US listed stocks. It supports investors to identify stocks to hold while hedging downside risk. It is based on the CQNS UP algorithm and the analysis finds portfolios with a better CQNS score than holding any individual stock. It finds many portfolio options, with a range of portfolio sizes, and we provide those options to clients to choose from.
These are expected to outperform the US equity market by having lower prior price volatility and higher expected returns than other stocks or portfolios.
These stock portfolios are not only efficient, but they contain stocks of US companies that are profitable (net income > 0).
What you receive:
A set of optimized stock portfolios that are the most efficient, and have the best risk-return trade-off. We typically provide the top 25 of these portfolios, along with their portfolio CQNS score. This allows our clients to tailor their holdings with known impacts to their mathematical advantage.
In addition to finding and providing a set of optimized stock portfolios by CQNS score, we provide additional analytical deliverables, as follows:
For each stock that passed data validation, over the past 253 trading days:
- Stock variance for each stock, normalized to allow comparison.
- CQNS score for each stock
- Volume for each stock (% average)
- Price Change (% average)
- BETA (versus index ETF used)
- Stocks that meet a threshold for non-normal distributions in fourth-order price distribution (kurtosis) with low or high daily price variance
- Stocks that meet a threshold for non-normal distributions in the third-order price distribution (skewness)
- Dividends paid (% average price)
- Variance of daily closing stock price (value, normalized)
- Expected returns (%)
- Equity market capitalization
- Stocks with negative, high, or low BETA values (BETA value).
- Stocks with stock price change (% of average)
- Stocks with volume spikes (# of days volume)
Timing:
We initiate the analysis after 7pm ET to ensure complete trading day information.
We email to you (or upload in a pre-agreed way e.g., Google Drive) a management report along with a spreadsheet (.CSV) before the next market open, and often before midnight ET.
What you do:
You provide us with the following information as you place your order:
- Your name, physical address, email address & phone number
- Any special requests, instructions, or actionable objectives
- How you would like to receive your report and spreadsheet (if not by email). We use Google Drive, Slack, Microsoft Teams/Office, and other collaboration technologies.
You may also call or email us with your information.
- Email: jeffrey@quantum-usaci.com
- Cell: +1.312.515.7333
For repeat orders, you may request an invoice. We accept payment via check, ACH, or through an online payment processor (secure).
We will not sell or share your information unless legally required.
Thank you for your order and your business.
US Composite stock market analysis (down run)
Are you looking for stocks to avoid holding or to short? This service provides that data along with significant backup information on the entire US Composite set of US-listed stocks that traded on the day of your run. We run the model at/after 7pm ET on that day's market close data.
Do you want to identify inefficient stocks that have more historical price risk than expected return than other stocks?
CQNS DOWN is a quantitative analysis of US listed stocks that an investor might like to avoid or short, while also hedging upside risk. These are inefficient portfolios of stocks of money-losing companies with significantly poor CQNS scores. These have significantly more risk than expected return, and are based on our CQNS DOWN algorithm. Inefficient portfolios are often one or a few stocks, as diversification removed the exceptional level of risk in these stocks.
These stocks are not just inefficient. The companies behind these stocks have negative net income. Currently, stocks of companies with negative net income have 3.5x the price risk as investing in the S&P 500 ETF.
What you receive:
A set of 25 of the worst, most optimized US-listed stock portfolios that are the most inefficient, and have the worst risk-return trade-off. We provide the top 25 of these portfolios, along with their portfolio CQNS score.
In addition to finding and providing a set of optimized stock portfolios by CQNS score, we provide additional analytical deliverables, as follows:
For each stock that passed data validation, over the past 253 trading days:
- Stock variance for each stock, normalized to allow comparison.
- CQNS score for each stock
- Volume for each stock (% average)
- Price Change (% average)
- BETA (versus index ETF used)
- Stocks that meet a threshold for non-normal distributions in fourth-order price distribution (kurtosis) with low or high daily price variance
- Stocks that meet a threshold for non-normal distributions in the third-order price distribution (skewness)
- Dividends paid (% average price)
- Variance of daily closing stock price (value, normalized)
- Expected returns (%)
- Stocks with negative, high, or low BETA values (BETA value).
- Stocks with stock price change (% of average)
Timing:
We initiate the analysis after 7pm ET to ensure complete trading day information.
We email to you (or upload in a pre-agreed way e.g., Google Drive) a management report along with a spreadsheet (.CSV) before the next market open, and often before midnight ET.
What you do:
You provide us with the following information as you place your order:
- Your name, physical address, email address & phone number
- Any special requests, instructions, or actionable objectives
- How you would like to receive your report and spreadsheet (if not by email). We use Google Drive, Slack, Microsoft Teams/Office, and other collaboration technologies.
You may also call or email us with your information.
- Email: jeffrey@quantum-usaci.com
- Cell: +1.312.515.7333
For repeat orders, you may request an invoice. We accept payment via check, ACH, or through an online payment processor (secure).
We will not sell or share your information unless legally required.
Thank you for your order and your business.
Investment Planning Workshop
This service delivers a workshop and investment plan for our client. The investment plan consists of a summary of assets, expenses, timelines and objectives for our client. It also includes a discussion of investment options, including the use of our proprietary Chicago Quantum Net Score (CQNS) algorithm and platform.
This service consists of multiple preparation calls and meetings, a workshop (in-person) where we build a firm understanding of our client's financial situation and objectives, discuss topics and answer questions they may have.
We also run a pair of 'Chicago Quantum Net Score' runs (both UP and DOWN) for the client in advance of the workshop and walk through the insights and findings.
By the end of the workshop, and through the development of the investment plan, we have built a better understanding of the client's situation and found stock portfolios that may be attractive (either long or short). The client benefits from understanding then current information and analysis our firm has performed on the financial markets and increases their financial literacy.
We may also suggest the client watch a few of our YouTube videos and we can discuss the data sources and analyses we perform daily on overall financial markets.
The workshop portion of the service is intended to be delivered onsite with the client. It can also be spread over two days to accommodate schedules.
This includes up to 15 hours of effort from our Investment Advisor Representative.
- We discuss our approach, methodology, findings and recommendations in detail. We can conduct follow-up research.
- We conduct quantitative macro-economic and monetary policy discussions with clients to share 'big picture' ideas.
- We provide client-directed research and analysis of companies, industries or economies.
Review our recent stock portfolio analyses & market results
We incorporated Intrinio, a professional market data services firm into our model and process. Chicago Quantum is a satisfied customer of Intrinio.
