3. Determine specific winner and loser stock candidates

Diagoran measures the most likely return from each stock in your portfolio, the trend in its price. Diagoran measures the most likely risk in each stock, the statistical scatter in the price slopes about that trend. Diagoran measures the correlation in residual prices for every pair of your stocks. Therefore Diagoran can calculate the return and risk in your portfolio as a whole, precisely.

From these measurements, Diagoran finds trades in the specific stocks that most effectively move your portfolio toward your preferred ratio of overall return to risk. Diagoran shows you the most important candidates for potential trades. For example, here is part of the Portfolio Tactics report from an actual run on a real portfolio (with aliased ticker symbols), as saved in the User Guide:

These tactics identify the specific stock and the amount of movement, your cash balance as a result, and the probable effects upon your portfolio should you undertake this hypothetical rebalancing in the order shown.

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