Selection Differential → Conviction Spread (CS)
Conviction Spread (CS) measures how much a stock is expected to outperform the broader market, reflecting true selection strength.
Core Formula
CSs = Rs − Rmarket
Interactive Conviction Spread Calculator
Interpretation:
High positive CS justifies overweight positions. Near-zero or negative CS signals weak selection advantage.
High positive CS justifies overweight positions. Near-zero or negative CS signals weak selection advantage.
Tags:
Stock Market Calculators
