Short Ratio Formula in Excel

The Short Ratio formula in Excel (with MarketXLS) helps you quickly retrieve the ratio of shares that are held short relative to a stock’s average trading volume. This function is especially useful for traders and investors who want to evaluate market sentiment and potential short-selling pressure on a specific ticker symbol.

Understanding Short Ratio

• Purpose: The Short Ratio indicates how many days it would take short sellers to cover their positions, based on average daily trading volume.
• Key Benefits:
  • Aids in assessing market sentiment.
  • Helps identify possible short squeezes.
  • Provides a quick gauge of investor pessimism or speculation.
• When to Use:
  • Before making trading decisions on potentially volatile stocks.
  • When analyzing companies with high short interest to manage risk.

Syntax and Parameters

=ShortRatio(Symbol)

Return Value

• A numeric value representing the short ratio of the specified stock.
• Returns "NA" if the symbol is invalid, license is not active, or data is unavailable.

?? Note: Not all symbols are supported by data providers; in such cases, the function may return "NA".

Examples and Usage

1. Basic Usage

   =ShortRatio("MSFT")

   Retrieves the short ratio for Microsoft.

2. Index Symbol

   =ShortRatio("^SPX")

   Retrieves the short ratio for the S&P 500 index.

3. Option Symbol

   =ShortRatio("@MSFT 110122C00020000")

   Retrieves the short ratio for a specific Microsoft call option.

4. Cryptocurrency Symbol

   =ShortRatio("BTCUSD:DEFAULT")

   Retrieves the short ratio for Bitcoin (if available through the data provider).

? Pro Tip: Combine ShortRatio with other MarketXLS formulas like Sector, Industry, or FloatShares to get a broader understanding of your stock or ETF positions.

Common Questions

1. What happens if my symbol is invalid or not recognized?

   • The function will return "NA". Double-check your symbol or ensure it is supported by your data provider.

2. Why do I get “NA” frequently?

   • This could be due to an inactive license, unsupported symbol, or temporarily unavailable data. Verify your MarketXLS license and data source validity.

3. Are there performance concerns with many ShortRatio calls?

   • Large datasets or multiple queries can slow Excel performance. Consider using data caching or limiting frequent recalculations with Excel’s manual calculation mode.

4. Related Functions

   • Sector: Returns a company's industry sector.
   • Industry: Returns a company’s industry classification.
   • FloatShares: Shows the number of shares available for public trading.
   • MarketCapitalization: Retrieves the market value of outstanding shares.
   • SharesOwned: Displays the number of shares held by promoters or insiders.

?? Note: Always confirm data accuracy through your preferred stock market databases or official filings before making important investment decisions.