Triumph Trading

Similarity Score =(Sector Similarity Score * 0.2) + (Market Cap Similarity Score * 0.2) + (Employee Similarity Score * 0.2) + (Revenue Similarity Score * 0.2) + (Profit Similarity Score * 0.2)

Each individual score ranges from 0 to 1. Here's how you calculate each one:

1. Sector Similarity Score: If the two stocks are in the same "Sector", the score is 1. If not, the score is 0.

2. Market Cap Similarity Score: For instance, you might say that two stocks are similar if their market caps are within 10% of each other. To calculate the score:

   • If the market caps are within 10% of each other, the score is 1.
   • If one stock's market cap is more than double the other's, the score is 0.
   • For anything in between, calculate the score as 1 - (Absolute Difference in Market Cap / Larger Market Cap).

3. Employee Similarity Score: You might define two stocks as similar if their number of employees is within 10% of each other:

   • If the numbers of employees are within 10% of each other, the score is 1.
   • If one company's number of employees is more than double the other's, the score is 0.
   • For anything in between, calculate the score as 1 - (Absolute Difference in Number of Employees / Company with More Employees).

4. Revenue Similarity Score: Define two stocks as similar if their revenues are within 10% of each other:

   • If the revenues are within 10% of each other, the score is 1.
   • If one company's revenue is more than double the other's, the score is 0.
   • For anything in between, calculate the score as 1 - (Absolute Difference in Revenue / Company with Higher Revenue).

5. Profit Similarity Score: Define two stocks as similar if their profits are within 10% of each other:

   • If the profits are within 10% of each other, the score is 1.
   • If one company's profit is more than double the other's, the score is 0.
   • For anything in between, calculate the score as 1 - (Absolute Difference in Profit / Company with Higher Profit).

Then, you can add up the scores for each criterion, weighted according to their importance in your analysis, to get the total Similarity Score. If the Similarity Score >= 0.5, you might consider the stocks to be "similar".