I am currently working on a project and one way I want to filter stocks is by how stable their ROIC, FCF, etc. have been over time.
This would serve to get companies that consistently have a high free cash flow, and in turn have a stable business.
One potential way would be to get the standard deviation over the mean over the past couple of years.
Does anyone know how to implement this or have any other ways to calculate how stable an indicator has been over time?
This explains how to find the mean and standard deviation of price -
Mean + Standard Deviation of Price Tutorial
Thanks
Rahul Chowdhury
Hi Caden,
We can implement a standard deviation indicator and then use ROIC, FCF and other fundamental data to manually update the indicator. You can learn about indicators and how to manually update them with data in the indicators documentation.
To access fundamental data, you need to implement fine fundamental universe selection.
If you have any other questions, please don't hesitate to ask!
Best
Rahul
Caden klein
Thanks Rahul
Caden klein
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