Contact StarMine Analytical and Methodology Support: 888-888-1082 (US)
   What is the Short Squeeze Indicator (SSI)?
 
   The SSI is an independent but complementary quantitative ranking of US stocks based on their likelihood to experience a short-squeeze. Note this is a relative measure, not an absolute one. We do not define a squeeze as a fixed price change because investors have a range of risk tolerance levels. A score of 100 means very likely to have a short squeeze (high price rise) in next 30 days, and a score of 1 means very unlikely to have a short squeeze.

The inputs to the StarMine Short Squeeze Indicator are the price history and the StarMine Short Interest rank. The primary predictor of a squeeze is trailing price volatility, particularly the long-term (T12M) and medium-term (T3M) volatilities. In addition, our research has found that the short interest level is modestly predictive of squeeze risk.

Our research has found that commonly-used measures of squeeze risk, such as days-to-cover, are predictive of squeezes only in so far as they are correlated to price volatility and short interest level. Despite its popularity, days-to-cover itself is a surprisingly poor predictor of squeeze risk.


StarMine Help Center Welcome Page