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Visualizing Stock Mean Reversion and Momentum Signals

Article arXiv papers · Author: Zura Kakushadze et al.
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Summary

This document describes a stock-screening visualization tool organized around trading signals and practical filtering. Its back end calculates how far each stock is trading from its peers, using that relative deviation as a mean-reversion signal, and highlights large changes in the signal as momentum. The front end presents the signals with color coding and lets users sort or filter stocks by sector, exchange, signal, liquidity, and market capitalization.

The stated contribution is a functional interface that supports exploration of signal candidates while retaining useful controls. The document describes the tool’s design and available deployment formats, but provides no details about signal formulas, validation, historical performance, or trading rules. Its display can help users inspect stocks; it does not establish that the signals are profitable or that peer deviations will revert.

Key ideas

  • The tool flags stocks whose trading levels deviate from those of their peers.
  • Changes in the relative-value signal are used to represent momentum.
  • Color coding and filters help users browse stocks by market and signal attributes.
  • The description explains visualization and deployment options but gives no evidence of trading performance.

Tags

EquitiesMean reversionMomentum
Full text
# Stock Market Visualization


# Stock Market Visualization









We provide complete source code for a front-end GUI and its back-end counterpart for a stock market visualization tool. It is built based on the "functional visualization" concept we discuss, whereby functionality is not sacrificed for fancy graphics. The GUI, among other things, displays a color-coded signal (computed by the back-end code) based on how "out-of-whack" each stock is trading compared with its peers ("mean-reversion"), and the most sizable changes in the signal ("momentum"). The GUI also allows to efficiently filter/tier stocks by various parameters (e.g., sector, exchange, signal, liquidity, market cap) and functionally display them. The tool can be run as a web-based or local application.

Shown in full with attribution under the source's licence. Licence: abstract CC0

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.