How It Works
We combine three pillars of analysis — fundamental, technical, and sentiment — into a single confidence score so you can see the full picture at a glance.
The Three Pillars
Every stock is evaluated across three independent dimensions. Each pillar produces its own 0–100 score, and those scores are blended into one composite score based on your chosen timeframe.
Fundamental Analysis
We evaluate a company's financial health using eight key metrics. Each metric is measured against a best-case and worst-case range to produce a 0–100 sub-score, then weighted to form the pillar score.
| Metric | Weight | Direction |
|---|---|---|
| P/E Ratio | 20% | Lower is better |
| EPS | 15% | Higher is better |
| Revenue Growth YoY | 15% | Higher is better |
| Profit Margin | 15% | Higher is better |
| Return on Equity | 10% | Higher is better |
| Debt to Equity | 10% | Lower is better |
| Current Ratio | 10% | Higher is better |
| Price to Book | 5% | Lower is better |
Technical Analysis
We analyze price action and momentum using five indicators. When RSI signals a stock is oversold (below 30), we score it higher — this indicates a potential buying opportunity. SMA windows adjust by timeframe so the analysis matches your holding period.
| Indicator | Weight |
|---|---|
| RSI (Relative Strength Index) | 25% |
| SMA Trend | 25% |
| MACD | 20% |
| Price Change % | 15% |
| Volume Trend | 15% |
Sentiment Analysis
We aggregate recent news articles and score them for positive or negative tone. The lookback window varies by timeframe — from 3 days for swing trades up to 30 days for long-term holds. Freshness decay rewards recent articles more heavily, so the score reflects current market mood.
| Metric | Weight |
|---|---|
| Sentiment Score | 50% |
| Article Volume | 30% |
| Article Freshness | 20% |
Your Composite Score
The three pillar scores are blended into one composite score. The blend weights depend on the timeframe you select — because short-term and long-term investing rely on different signals.
| Timeframe | Holding Period | Fundamental | Technical | Sentiment |
|---|---|---|---|---|
| Days | 1–2 weeks | 15% | 45% | 40% |
| Weeks | 1–6 months | 35% | 40% | 25% |
| Months | 6+ months | 50% | 30% | 20% |
For swing trades, momentum and market mood drive short-term price action. For long-term holds, a company's financial health is the strongest predictor. When no timeframe is selected, "Weeks" is the default.
Data Confidence
Not every stock has complete data. We measure how much data is available for each pillar and assign a confidence level:
- High — 75% or more data available
- Medium — 50% or more data available
- Low — 25% or more data available
- Insufficient — less than 25% data available
If a pillar has insufficient data, it's excluded from the composite score and the remaining pillar weights are re-normalized so your score is always based on the best available information.
Reading Your Scores
Scores are color-coded so you can quickly gauge signal strength:
Disclaimer
Market Matrix scores are for informational and educational purposes only. They do not constitute investment advice, financial recommendations, or solicitations to buy or sell securities. Past performance does not indicate future results. Always conduct your own research and consult a qualified financial advisor before making investment decisions.