Weighted

To describe that a figure is being corrected or adjusted is used the word weighted. It’s utilized to show distinct weights of the parts of which a figure consists of. There are different concepts that involve “weighted”, for example, weighted average, it doesn’t estimate each part in the same manner, but rather consider the proportional relevance of them. The next concept that involves “weighted” is the DJIA (Dow Jones Industrial Average), it’s a price-weighted average, relying on the share’s price and its sum, it makes a comparison of bonds, shares, etc.

Methods which involve Weighted

The “weighted” is exceedingly useful since more relevant information may be chosen by means of it.

Moving average. This method focuses on the latest information, thus, makes clear the present market movements.

Weighted alpha. This method is quite similar to the above one. It identifies the number of decreased and increased stocks during a particular time, focusing on the latest activities as well.

Both methods are more appropriate for short-term analysis, as both of them place emphasis on the present time. There are more weighted methods that contain, for instance, weighted average coupon or weighted average annual rate of return.

Weighted in passive investing

For investors who are in search of a strategy that minimizes purchasing and selling and maximizes profit, the passive investing strategy is the ideal strategy. The strategy involves periodic or even constant checks of sector weightings. One of the most common and convenient ways of monitoring is by means of passive investment vehicles based on the S&P 500 Index.