 |
 |
|
|
 |
 |
 |
 |
|
|
PickStock (copyright 2003, Bell Software and Services, Inc.) uses principal components analysis to search out potentially underpriced stocks by analyzing a user-supplied database of historical stock prices. The program is believed to be an implementation of what is known in the financial market modeling community as 'arbitrage pricing theory' (see for example S. Ross, 'The arbitrage theory of capital asset pricing', J. Economic Theory, vol. 13, pp. 341-360, 1976). The theory postulates that a given vector of prices (for example, today's price for a set of stocks) can be explained by a linear combination of underlying economic components. While there is apparently substantial debate in the economic community as to the viability of the arbitrage pricing theory, this application provides a tool to test it out on real data.
Who can best make use of this application:
It is hoped that any user who can download stock price data into MetaStock text format will find PickStock sufficiently easy to use. Facility in handling text files and importing them into spreadsheets is also a plus. Economists and stock analysts may be able to utilize the program along with a more traditional analysis of economic fundamentals. Scientists, engineers, and students may even be able to tap into the powerful principal components analysis engine that PickStock incorporates by replacing closing prices with arbitrary data (ie. a given 'date' can be associated with one experiment having outputs for each of the 'tickers' with the output values corresponding to the ticker being in the 'close' field).
|
|
Editor review: Reviewer, 2007-07-17 05:24:00
Getting better returns from stocks is everyone’s dream. If you can get a software which can pick best stocks from a bunch, would you be willing to invest in it? PickStock 1.6 does just that. It uses Arbitrage Pricing Theory to find out which stocks are undervalued and which are overvalued. You need to provide historical data-base of price of the stock for the software to analyze. It then assigns weight age to different factors and then analyzes what should be the price.
You can put the data in Metastock text format. It also has the feature of handling text files and importing them into spreadsheets. The software is very useful for economists, stock analysts who can add their own analysis and find out the best pick. The software is also useful for researchers who want to test the theory on real data.
There are debates on the validity of the theory and hence the results may not be very accurate.
|
 |
 |
Visit homepage of PickStock
Download PickStock 1.6
Popular search terms related to PickStock:
tap, stocks, vector, financial, engine,
|

historical stock prices music theory stock tickers stocks analysis product pricing vector files copyright dvd stock analysis database modeling text analysis

Programs related to PickStock
|