@Sudhakar_Subramanian Thanks for clarifying.
I think I have understood what you are suggesting. Let me clarify.
- You have added one more look back period (1 week) in addition to 1y and 6m.
- You are not quantifying the rate of change, but looking at positional change only.
- It could happen that a stock changes by 5% in one week and moves from 50 to 40 while another moves by 10% and moves from 30 to 20. Which is more important? Clearly, the one moving 10%.
Typically, we do not consider short look back periods like 1week or 1 month or even 3 months as you might get spikes in data that lead you to wrong conclusion. 6m and 1y are normally considered balanced periods where we do not miss out the momentum, but at the same time do not get swayed by spikes in price. Our volatility factor will protect us from considering stocks with sudden spurts.
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