Up Ratio

The share of tickers in the study universe whose latest AI prediction points up; the core bullish breadth statistic in SD clustering.

The Up Ratio is a technical breadth indicator used in algorithmic market analysis to measure the proportion of assets within a specific universe that are predicted to move upward over a given timeframe. It serves as a core bullish breadth statistic, helping investors gauge the overall strength and direction of market momentum by looking at aggregate predictive data rather than individual stock performance. To calculate the Up Ratio, the number of individual tickers with a positive or upward prediction is divided by the total number of tickers within the study universe that have active predictions. This resulting fraction is expressed as a percentage. In quantitative models, this ratio acts as a primary gatekeeper for identifying market-wide bullish signals. For a trading day to be classified as having an upward bias, the Up Ratio must typically clear a specific statistical threshold, such as a standard deviation boundary, regardless of how strong individual stock predictions might be. Investors monitor the Up Ratio to identify periods of broad market participation, which often signal more sustainable trends than rallies driven by only a few mega-cap stocks. A high Up Ratio indicates widespread bullish sentiment across the analyzed universe, while a low Up Ratio suggests defensive positioning or a bearish outlook. A key pitfall for investors is failing to consider the underlying sample size; a high Up Ratio in a very small or highly specialized universe may not accurately reflect broader macroeconomic conditions.

In a curated study of 50 large-cap stocks, 40 stocks receive an upward prediction from the model, while 10 receive a downward or neutral prediction. The Up Ratio is calculated as 40 divided by 50, which equals 0.80, or an 80% Up Ratio.