S3 Partners announced that it will offer its Squeeze Risk Score on Bloomberg Terminal, which clients can use to screen for stocks that are at risk of a potential short squeeze. A higher score forecasts increased volatility and identifies binary trading decisions: an alert for short sellers to cover their positions; an alert for long buyers to identify names with momentum.
S3 Squeeze is a predictive analytic that provides a short squeeze risk score by including additional factors and insight into short sale risks associated with individual securities. The score is a clear proxy for the daily, weekly, and monthly cumulative trading losses and profits in short positions for each listed company.
This new information now available on the Bloomberg Terminal will help risk managers identify and incorporate new risk factors into their investment processes. S3 has identified 583 securities at risk globally, with a total market cap value of $1.38 trillion. Broken down by region, that looks like: US/CAN, 277; APAC, 161; EU, 117; other, 28.
“We remain committed to providing enterprise data and analytics that investors use to identify risks and opportunities in real-time,” said Bob Sloan, founder of S3 Partners, in a statement. “The S3 Squeeze Risk Score is the only place institutional investors can go to measure and identify global securities that will be subject to short squeeze risk events, and we are excited to make these analytics available to our clients as well as all Bloomberg Terminal subscribers.”
In a client note, Ihor Dusaniwsk, head of Predictive Analytics at S3, wrote: “GME [GameStop] is an extreme example of the risk in a short squeeze, but now everyone has to screen for it. So S3 has created a new metric, The Squeeze Score, that applies a multi-factor approach in identifying possible short squeezes. Using S3’s analytics platform, we model short dollars at risk, capital markets liquidity, financing liquidity, daily trading liquidity and short-side profits\losses, amongst many factors, to rank the risk of a short squeeze for over 50,000 securities worldwide.”