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 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 is designed to run on quantum computers. It is ‘a little different’ from other models.
Our primary service is stock analysis (offered on a fixed-price basis)
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 will likely move ‘up’ faster than the underlying stock index.
- A stock with maximum risk and minimum expected return is inefficient, and will likely move ‘down’ faster than the underlying stock index.
- Sometimes these stocks move very quickly and aggressively as the market detects and corrects for this mis-pricing.
- 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 the tail of daily stock price changes has favored advances or declines.
- We assess kurtosis, which measures whether the stock makes unexpectedly large daily price moves, either up or down.
- 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 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.
- We create and invest a repeatable, scalable service that we continually run, analyze and improve. Over time we better serve our clients. We keep growing our data input sizes and solver effectiveness. We learn from our successes and our failures over time. We are growing our expertise in the US equities markets.
- We offer an alternative, which is to pay us to code, test and operate a custom analysis and model. This makes sense for clients that want to 'own' the analysis and have a very specific idea in mind of how they want to select stock portfolios. We welcome this business.
- This algorithm is free from emotion. This is a fact-based analysis, run repeatedly. The stocks selected change over time.
- 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.
Subscribe to Chicago Quantum's Newsletter (Monthly)
Subscribe to our new Newsletter service. Receive analysis and insights. Videos and written reports. We will package and deliver our content as released, along with a monthly summary.
We add content to our subscription service based on what we observe in our stock analysis and from market analysis. We are open to member requests.
As an example, we will run our Chicago Quantum Net Score (CQNS) model (an "UP" run) each month and share the analysis with our subscribers (about a week after it runs).
We also provide access to our YouTube videos. These are currently live-streamed on YouTube, but we may create custom content for our Members.
A monthly newsletter with findings and observations about the market and monetary policy of the USA.
We will include one monthly call with the President, Jeffrey Cohen. During this 30 minute call you may ask questions and discuss investments, current events, monetary policy, or other topics of interest.
Consulting Workday
You are buying a one-day engagement with the President (Jeffrey Cohen) delivered over a full day.
We operate at both the strategic and tactical level depending on client need. This includes business strategy, business problem decomposition, mathematical and data design, algorithm design, tactical business optimization problem, Information Technology, and use of quantum and classical solvers.
We will work diligently and in a focused matter on one of your agenda items (e.g., business strategy question, client challenge, IT department plan, or optimization effort). Please specify your requirements.
Typically, this would be conducted onsite with your team (either in your offices or in a remote facility). However, due to Covid 19, we can deliver this service remotely via video conference.
This standard offering comes packaged with:
- travel time to your client location
- Deliverable: a Management Report with three sections: 1) Topics discussed, 2) Agreements and decisions, & 3) Consultant recommendations.
You may buy multiple days to fund a project. We work an 8-hour day, or longer if requested.
Actual travel expenses, supplies, computer hardware and software, and other materials that we must purchase to deliver this service are billed separately, as incurred, plus 8% administrative and financing markup.
Notes:
The President, Jeffrey Cohen, has been a management consultant for ~ 30 years, with experience as a Global Consulting Partner at IBM, Consulting Partner at HPe, Managing Vice President, N.A. Professional Services at Siemens, Associate Partner at McKinsey & Company, and Senior Manager, Consulting at KPMG.
We believe management consulting is pursuing "the art of the possible"
- We offer traditional IT management consulting services.
- We offer quantum computing consulting, including the development of a quantum computing strategy and corporate initiative.
- We offer IT outsourcing and vendor management consulting
- We offer to code and run your business problem on our discrete mathematical models & quantum annealing computers from D-Wave Systems Inc.
- We work on helping you to structure and solve a business analysis problem.
- We offer to help you understand the quantum computing ecosystem (hardware, software and services).
- We work with two suppliers who offer quantum security, or secure communication hardware and services. We can facilitate a discussion on quantum-related security.
- We offer to help you identify and propose a quantum computing use case.
- We offer financial analysis of stock portfolios based on our Chicago Quantum Net Score and Chicago Quantum Ratio.
- We ALWAYS work confidentially, diligently, free of conflict of interest. We bring our best thinking and insights.
We believe that a strategy discussion is also a training and enablement session. This is about visualizing the art of the possible in regards to advanced computing infrastructure. We will come prepared to apply what we collectively know about your industry, your challenges, and the state of the union of the technology to drive towards a conclusion that makes sense.
Most of us have spent our professional lives structuring and solving problems with pencil and paper (we still do), and using classical or traditional means. We may end up doing that, or we might find and define problems that are solved better with quantum computers.
CQNS UP or LONG analysis
After we receive your order we run our quantitative analysis on all US listed tickers that traded that day (currently ~ 11,000). We complete the 'run' and write up a management report with our results and observations.
What you receive:
1. All-star list: Individual stocks that are more efficient than an evenly weighted portfolio of all profitable stocks that pass data validation. These stocks have 'alpha' from a better risk-reward trade-off and should perform better than a fully diversified, equally weighted portfolio.
2. An ordered list of all stocks by CQNS score, along with other statistics about each stock (e.g. normalized variance, expected return, relative trading volume, relative price level, and past dividend yield). This is provided in a spreadsheet.
3. An ordered list of the top 25+ stock portfolios by CQNS score found. These are stock portfolios that are more efficient than a fully diversified, equally weighted portfolio.
4. Kurtosis analysis to identify stocks with low price variance and either a leptokurtic or platykurtic distribution (non-normal distribution in the fourth moment)
5. Skewness analysis to identify stocks with a large positive or negative skewness (non-normal distribution in the third moment)
6. Top 150 stocks by CQNS score
7. Bottom 50 stocks by CQNS score
8. Top dividend payers (over the past year)
9. BETA value analysis including a) negative BETA stocks, b) low BETA stocks and c) high BETA stocks
10. Price Spikes: Stocks with large, one-day price moves (up or down) over the past year
11. Volume Spikes: Stocks with exceptionally large volume in one day (100x average) over the past year
12. Stocks that split over the past year
13. Historical Data: Market returns for the S&P 500, NASDAQ Composite and Russell 2000 ETFs, along with the historical variance and future expected returns (annualized) of a portfolio of all profitable stocks that passed data validation
We email or upload to you the management report and the spreadsheet.
What you do:
You provide the following information as you place your order and pay via our website.
- 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 the information separately.
- Email: jeffrey@quantum-usaci.com
- Cell: 312.515.7333
- Office: 847.780.4401
For larger orders, you may request an invoice and we accept payment via check, ACH, or through an online payment processor (secure).
Thank you for your order and your business.
One week of custom portfolio algorithm development & coding (quantum & classical)
One week is defined as a continuous 5 day period (e.g., Monday - Friday).
We work in Python in Jupyter Notebooks. We code our proprietary solvers into the notebooks along with code to run the D-Wave Systems quantum annealing computers. You may want to software engineer the code afterwards to harden and speed up the models.
We will apply our skills, experience, and knowledge of the D-Wave Systems quantum annealing computers as well as with coding and running classical solvers. We apply our domain expertise in financial services and equities.
We will work with your team as requested (independently or collaboratively). We can provide training and mentorship as requested.
We will leverage your expertise in coding these if/when we work together with your development or trading teams. We are happy to work with you in your facility (safely due to Covid 19), work on video, or work remotely against your specifications.
You receive and own the code and documentation that we built upon payment for the time you have purchased. If you pay in advance, you may request access to the code and documentation at any time.
You will need to license any third-party libraries, modules, functions or SDKs we utilize. If you choose to use our professional market data services provider, Intrinio, you will need to acquire a license for that data (optionally through us).
We would like to run and maintain the code we develop for you and provide management reports (for a fee) at your option.
We will invoice our time and bill any expenses as incurred, or you may pay for our time in advance through this website.
Stock Analysis Consultation
You and I will have a discussion of the stocks that were picked in your run, a deeper dive into the Chicago Quantum Net Score algorithm, methodology, and results. We will also help you understand the valuations of the firms selected and special (if any) considerations with how the stocks traded over the past year.
You may arrange this to occur after your stock market analysis to better understand the results and discuss implications and actions.
We can discuss the other information we provide about each of the stocks analyzed, including dividends, relative price strength, relative volume strength and volatility.
Discussion to be scheduled and conducted as soon as practical, and can be within the hour if necessary.
A typical, repeat client spends 1-2 hours a week on the phone to build rapport and a common understanding of the findings of the model, key stocks which score well "UP" or "DOWN", changes in relative rankings, market rotation, and potential actions.
Over time, we may jointly analyze a few stocks in detail and discuss their current and future financial position, social media positioning, and prospects.
After payment, please text Jeffrey Cohen at +1.312.515.7333 or email him at jeffrey@quantum-usaci.com to schedule your consultation.
CQNS DOWN or SHORT analysis
Do you want to identify inefficient stocks that decline faster than the market on a down day?
Want to find stocks expected to underperform the US equity market by having negative net income and a worse historic price volatility and expected return trade-off than other stocks or portfolios?
These effects last ~20 trading days.
After we receive your order, we run our quantitative analysis on all ~11,000+ US listed tickers that trade that day. We complete the 'run' and write up a management report with the results and our observations.
We email or upload to you the management report and the spreadsheet.
What you receive:
1. Dog-star list: The most inefficient 50 individual stocks found. These are the stocks with the poorest risk/return trade-off.
2. An ordered list of all stocks by CQNS score, along with other statistics about each stock (e.g. normalized variance, expected return, relative trading volume, relative price level, and past dividend yield). This is provided as a spreadsheet.
3. An ordered list of the most inefficient 25+ stock portfolios. Many will be individual stocks as diversification improves risk/return trade-offs.
4. Kurtosis analysis to identify stocks with low price variance and either a leptokurtic or platykurtic distribution (non-normal distribution in the fourth moment)
5. Skewness analysis to identify stocks with a large positive or negative skewness (non-normal distribution in the third moment)
6. Worst 150 stocks by CQNS score
7. Best 50 stocks by CQNS score (the best of the negative net income stocks)
8. Top dividend payers (over the past year)
9. BETA value analysis including a) negative BETA stocks, b) low BETA stocks and c) high BETA stocks
10. Price Spikes: Stocks with large, one-day price moves (up or down) over the past year
11. Volume Spikes: Stocks with exceptionally large volume in one day (100x average) over the past year
12. Stocks that split over the past year
13. Historical Data: Market returns for the S&P 500, NASDAQ Composite and Russell 2000 ETFs, along with the historical variance and future expected returns (annualized) of a portfolio of all negative net income stocks that pass data validation.
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: 312.515.7333
- Office: 847.780.4401
For larger orders, you may request an invoice and we accept payment via check, ACH, or through an online payment processor (secure).
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 'Chicago Quantum Net Score' run 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 what our firm has to offer, and the specifics of our methodology (seen in action).
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.
- We discuss our approach, methodology, findings and recommendations in detail.
- We program a client’s proprietary ideas, methods and models on our platform. The resulting code is run and maintained by our firm. The code is jointly owned.
- 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
October 13, 2021 update: We incorporated Intrinio, a professional market data services firm into our model and process. Chicago Quantum is a satisfied customer of Intrinio.
