Quantitative Partners

Phil Erlanger Research Co.

Short Interest Ratio

Example Chart The traditional calculation of "Days to Cover," but with a twist. The Erlanger Short Ratio is calculated using the same variables monthly number of shares short divided by the average daily volume. Erlanger uses a 12-month weighted average daily volume instead of the traditional 20 days. This allows a smoother calculation and avoids misleading ratios during volatile market conditions and individual anomalies like analyst recommendations and earnings reports. The Erlanger Short Ratio will change on a monthly basis as the new short interest numbers are released.