Ranking Nodes

Ranking Nodes

Stock Factor or Formula

A stock factor is a simple factor that you can find in our library of factors. It does not include functions (factors that require a parameter). If you choose a node based on a stock factor, it will have a default direction (higher or lower), which you can switch manually.

A stock formula is a factor that you write yourself using P123's vocabulary.

Industry and Sector Factors or Formulas

These factors and formulas apply to an entire industry or sector rather than to an individual stock.

Aggregate Nodes

Composite Node

A composite node collects the rankings of the nodes inside it according to the weighting you choose; it functions more or less like a folder of nodes.

When starting a composite node, you can choose to rank higher values better, lower values better, or use the summation only. If you use higher or lower values better, the composite node will give you values, calculated according to the nodes inside, which evenly range between 0 and 100. If you use the summation node, the value of the composite node will simply be the weighted average of the values of the nodes inside.

Warning: if you choose to rank lower values better and you're using Percentile NAs Negative, then stocks with lots of NAs will rank at the top of your composite node's scores, not at the bottom.

Conditional Node

A conditional node ranks a stock on two different factors depending on a criterion that you set.

The conditional node begins with a Boolean formula, one that evaluates to true or false.

Then, if the value is true, the stock is evaluated on the nodes that you assign to stocks that pass your condition; if false, the stock is evaluated on the nodes that you assign to stocks that fail your condition.