We Perform Quantitative Analysis
The Chicago Quantum Net Score, or CQNS, is our proprietary algorithm and platform. We use it to analyze the US composite stock market daily (optimize stock portfolios at meaningful scale).
We will build a separately managed account using a hedged Chicago Quantum Net Score model for you.
Since we made this video we have taken steps to to define and test our own portfolio management approach).
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.
We offer non-discretionary research on stock price movements to clients including institutional investors, high net-worth individuals (‘accredited’ investors), and financial services businesses. We provide information for you to make your own investment choices.
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.
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.
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.
Chicago Quantum Value Proposition:
- 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.
Our Ancillary Services (offered on an hourly or weekly basis)
- 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.
