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What Is Quadrix?
Let me tell you directly about Quadrix—it's a stock rating system that employs over 90 variables across seven major categories to assess a stock's value. Horizon Publishing Company produces and maintains this system. Those seven categories include momentum, quality, value, financial strength, earnings estimates, performance, and reversion. For any given stock, the overall score comes from a weighted average of all these 90 variables.
Rich Moroney, the Chief Investment Officer at Horizon Investment Services, developed Quadrix, and we've been publishing scores for stocks since 2000.
Key Takeaways
- Quadrix is a proprietary stock screening system.
- The screener examines publicly traded stocks in the U.S., including some ADRs of foreign companies listed on U.S. exchanges.
- Quadrix is not a risk-based portfolio builder based on modern portfolio theory, unlike many robo-advisors.
How Quadrix Works
Quadrix functions as a stock evaluation tool, rating stocks based on scores from variables that fit into one of seven categories: momentum, quality, value, financial strength, forecasted earnings, performance, and reversion. You can also use it to track performance across industry groups.
Consider Quadrix your initial stock screen for portfolio construction. It analyzes those 90 variables across a universe of more than 4,000 stocks, helping you narrow down the pool of potential investments. Remember, it's not designed as a risk-based portfolio builder like some robo-advisors.
Examples and Uses of Quadrix
At Horizon Publishing, we use Quadrix in-house to screen stocks for our clients, and it's available to subscribers of our newsletter products. As I've noted, it's not a risk-based portfolio builder and doesn't depend on Modern Portfolio Theory to weight stocks or assess risk versus return for you as an investor.
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