1. Overview

1. Overview

Type in a ticker symbol and click the Submit button or press Enter on your keyboard. This will show you the Report for a stock you know. Click on the Scatterplot Chart to see reports for more stocks with similar return and risk near your chart click. (Chart clicks do not work in Firefox; use Opera 9.0, Safari 2.0, Internet Explorer 7.0 or Netscape 7.0. Opera and Safari also honor the "back" button, although you should use a smaller text size in Safari.)

You can filter your selection of stocks. Change the Settings for cyclicals or recent market close and click Submit or press Enter. This limits your chart clicks to stocks with your preferred behavior. You can see the scatter of the filtered stocks marked on the chart. Most (especially those with low risk) have a neutral return, neither high nor low. Click on the Restart button to return to the introduction to the screener.

The DiligentInvestor screener may help you buy at high risk, hold long-only for a year or more, and then sell at high return. This requires a well-diversified portfolio. If you diversify you can reduce your total risk as measured by tools like Diagoran® 2006. Then you can buy stocks with higher specific risk, which may increase your total return, outside of market risk. You should ensure that a candidate stock has low correlation against stocks already in your portfolio.

Risk is higher toward the right of the chart. Return, low or high, reaches equilibrium with high risk along the two branches of the crescent-shaped concentration of stocks. This concentration extends from center left toward the right, at top (high return) and bottom (low return) of the chart, with its greatest density marked by a purple curve. Stocks in equilibrium do not provide opportunities for change.

When you type in a ticker symbol or click on the chart, the screener also shows you the return and risk measured one and two months before the date at the lower left of the chart. These two line segments are colored green if the return is rising, red if the return is falling. On average, stocks near the top and left tended to rise, and near the bottom and right tended to fall. A diagonal blue line roughly separates these two regions of the chart.

You might buy a stock with a history of rising return, currently with high risk and moderate return, from among the stocks on the right of the chart, between the two equilibrium branches, above the blue line. These stocks should increase their return more rapidly than others do. You should check that their return really is rising, using all available tools. This positive change in return might improve your wealth. First, read the Warnings.