Short Interest Ratio
Short Interest Ratio is an indicator used by both technical and fundamental analysts in order to recognize current sentiment on the market for one stock. It is calculated by dividing short interest by the average daily volume for a stock over some period.
By using this ratio, analyst can predict in how many days short sellers are able to cover their positions in a stock that begins to rise. In addition, if the ratio is low, it can be an indicator of bullish marker, and if the ratio is high, it represents bullish sentiment on the market.
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