earlier, i stated that quant mainly uses open, hi, lo, close, and volume data. that's generally true, but there are other ways to quant the stock of your choice. all things are connected. here are a couple of ways to quant against external data:
- quant against a related index. for example, if yours is an energy stock, you could quant the index performance against your stock's pps. there are many such indices. somewhere, buried in that data, is the relationship to your stock.
- quant against an apparently unrelated index. this may be even more fruitful than using a related index.
- devise your own index, quant it, and run it against your stock's pps. now it gets really interesting. by doing this, you're introducing some "apparent" fresh randomness to the process. but it's not really randomness, since everything, under quant rules, is related anyway. so what you're actually doing is finding new correlations not yet noticed by other quants.
true, you may often have to factor your net values to make them all readable on a single chart, but that's a small price to pay for the potential richness of the enquiry.
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