Skip to content

A New Way To Analyze Stocks

The big news of these days for the internet seem to be the launch of the wolfram alpha search engine. Which, after our first tests, looks as more of a fad.

Wolfram alpha reveals itself to the world as a different search engine – in a sense that it uses different search algorhitms compared to any other search engine. It is supposed to be much closer of the human thinking than the cold, rational algorhitms of its bigger and older competitors (see yahoo or google).

Well, it’s a bit early to judge its efficiency. However, running an investing analysis test on wolfram alpha, we at had a nice surprise. Type two stocks on wolfram alpha (for example google and yahoo). The search engine will generate an automated comparison between those, a simple effect which required more steps on any other platform.

But the surprises do not stop here. Wolfram Alpha compares stocks not only on their stock exchanges performance, but also based on their fundamental financials. It offers table comparison for market cap (definition=no of shares issued multiplied by the spot value of those shares), revenue, employees, net income, P/E ratio and others. Which is a very useful overview of the stocks in one single screen. the beauty of it is not the data offered – after all you can get all the information on any analysis platform. The beauty is how simple you can get this data and how logical it is structured.

This is not all. Wolfram Alpha compares stocks based on their recent daily performance. It also analyzes shares based on the recent performance of benchmarks – be it market indexes or government bonds. Wolfram Alpha gives you even a correlation matrix (to show how well linked are the stocks in performance) – something which was perceived to be the privilege of those who paid big subscriptions.

Now, all of these features come with a word of caution – they are still under test. However, the features prove to be quite promissing and we look forward for more of these…

Leave a Reply

Your email address will not be published. Required fields are marked *