InsidersTradesSigma
Quantitative Signals & Scoring
The number of standard deviations a value sits above or below the mean of its distribution.
Z-scoring puts heterogeneous inputs on a common, unit-free scale so they can be combined. In the Sigma model, raw factors such as trade size relative to market cap, or an insider's hit rate, are standardised before they enter the composite, so a large absolute number does not dominate purely because of its units.
Formula
Worked example
A trade worth 0.42% of market cap, against a mean of 0.10% and a standard deviation of 0.16%, scores (0.42 - 0.10) / 0.16.