Short ratio

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Short ratio

Number of shares of a security that investors have sold short divided by average daily volume of the security (measured over 30 days or 90 days). There are various interpretations of this ratio. When people short, it is usually (but not always) because they are pessimistic about the security's future performance. Shorting involves buying at at some point however. Hence, some would interpret a high short ratio as an indicator that there will be some buying pressure on the security that would increase its price.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

Short Ratio

In technical analysis, a ratio of short sales made by investors to the total trading volume on a given trading day. Investors often sell short when they expect security prices to fall. Thus, a high short ratio is considered a bearish signal, while a low ratio is thought to be bullish.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
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The electric drive is paired with a two-speed synchro-shift Steptronic transmission, and the engine is mated with a six-speed Steptronic gearbox, which is fast, smooth and with short ratios, responsive.
The other big plus factor on the SQ5 is the well-proven VAG made eight-speed tiptronic transmission where the lower gears have ideal short ratios leaving the upper gears longer to help save on fuel.
As such it should be noted the mean short ratios of 18.04, 16.12, and 19.26 percent for downgraded, upgraded, and affirmed rated firms suggest that, on average, approximately 18-19 percent of daily trade volume is made up from short sales.
Diether, Lee, and Werner suggest the short ratio measure is much less skewed than the other measures of short-selling activity.
[standardized short ratio.sub.i,t] = [short ratio.sub.i,t] - [bar.[short ratio.sub.i]]/[sigma]([short ratio.sub.i]) (1)
[standardized short ratio.sub.i,t] = [short turnover.sub.i,t] - [bar.[short turnover.sub.i]]/ [sigma] [sigma]([short turnover.sub.i]) (2)
Similar to the market-adjusted returns analysis, we compute the average standardized short ratio and standardized short turnover for each and calculate a (cross-sectional) pairwise f-test of changes in the mean.
Thus, we compute the following two short ratios for stock i on day d during the five-minute interval j as:
In Panel B, we provide the summary statistics for short ratios, SHRATI and SHRAT2, computed by scaling five-minute short volume by the number of shares outstanding and the total volume, respectively.
where [ASHRAT.sub.i,j,d,m] is the abnormal short ratio computed during a reversal of m x [[sigma].sub.i] magnitude in stock i during a five-minute periodj on day d and where [MSHRAT1.sub.i,m] and [MSHRAT2.sub.i,m] are the benchmark five-minute averages computed on days with negative and positive price changes of m x [[sigma].sub.i] magnitudes that are not followed by same day reversals.
where [RET.sub.i,j] is the prerebound (Specifications [1]-[6]) or postrebound (Specification [7]) five-minute percentage return for stock i; [SHRAT1.sub.i,j] is the short ratio from Equation (1); [LRAT1.sub.i,j] is the abnormal long volume scaled by the number of shares outstanding; [SHIMB.sub.i,j] and [LIMB.sub.i,j] are short and long order imbalances in stock i, respectively; [QSP.sub.i,j] is the quoted spread; and [RET.sub.i,j-1] is the lagged return.
Ten participants were randomly assigned to a condition in which the negative stimuli were very short ratios, and the other 10 were assigned to a condition in which the negative stimuli were very large ratios.
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