investometer in action
An example of how to measure the accuracy of analysts' forecasts using the follwing simple assumptions:1 AnalystUniverse of 2 StocksWeekly Forecast
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| From the example shown on the graph, it becomes obvious that the analyst is much more accurate in his weekly forecasts for Stock2 than for Stock1 and he should endeavour to find out why! |
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W1F W1A W2F W2A W3F W3A W4F W4A S1 10 5% 4 -3% -5 -10% -10 -6% S2 5 5% -2 -4% -10 -13% -4 -6% |
where... S = Stock W = Week F = Forecast by Analyst on investometer A = Actual % peformance S1 = Stock1 etc, etc W1 = Week1 etc W1F= Week1 Analyst Forecast W1A= Week1 Actual % performance S1W1=Stock1 Week1 plotted on the graph opposite |
Grab this swicki from eurekster.com
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