Target Weight is the volatility adjusted recommended position size for a stock in your portfolio.
How much should you invest in each stock?
Target Weight gives you an idea of what the percentage weighting of the stock should be in your portfolio - the position size.
It looks at the 20 trading day volatility of the stock and calculates the target weight accordingly.
The more volatile a stock is the lower the target weight will be.
The maximum target weight in the stock screener is 7%.
How to use the ratio
Available as a screening ratio: No
Available as an output column ratio: Yes
Target Weight is only available as an output column of your stock screen.
This is how you select it:
How to select Target Weight as a column
Keep in mind that the target weight will change on a daily basis because of stock price movements.
To track the target weight of stocks in your portfolio you build and save a Watchlist which can be called up with a few mouse clicks.
This article shows you what Watchlists are all about: Watch lists added to the screener - as many as you need
Click here to start using Target Weight in your portfolio NOW!