AI & Conviction Model
Institutional research logic.
Delivered in seconds.
Prism's 7-signal conviction model scores every ticker 0–100, then leading AI reasoning models synthesize those signals into a plain-English narrative — the way an analyst would, without the hours of work.
The 7-Signal Conviction Model
Each signal is independently scored and weighted. The composite conviction score reflects the balance of evidence across all seven dimensions — not a single data point.
Analyst Consensus
20%Buy/Hold/Sell distribution across covering analysts, weighted by recency and firm tier.
Momentum
15%Price momentum relative to sector peers over 1-day, 5-day, and 20-day windows.
Price Target Upside
15%Percentage upside to mean analyst price target — calibrated for over-optimism bias.
RSI Position
20%14-day RSI mapped to a 0–100 conviction score, with oversold/overbought zone weighting.
52-Week Range
15%Current price position within the 52-week high/low range as a screening filter.
Insider Activity
10%Net insider buy/sell activity over the trailing 90 days, normalized by float.
Earnings Surprise
5%Rolling average of EPS surprise magnitude across the last four quarters.
Options signals in the mix
Options market data — IV Rank, Put/Call ratio, Max Pain, and unusual activity — is injected directly into the AI conviction prompt. The narrative reflects options positioning alongside fundamental signals.
- IV Rank (low/mid/high volatility environment)
- Put/Call ratio skew interpretation
- Max Pain relative to current price
- Unusual volume/OI flags
Example AI Narrative
“Microsoft demonstrates resilient fundamentals with a 72/100 conviction score. Analyst consensus is strong at 85 (38 Buy, 7 Sell). The mean price target of $438 implies 18% upside. RSI at 54 is neutral — neither overbought nor oversold. Options show IV Rank 28 (low volatility environment) with a slight call skew (P/C 0.63), suggesting institutional positioning remains constructive.”
For informational and research purposes only. Not investment advice.
Prism is a research screening tool, not a financial advisory service. All AI-generated content is for informational purposes only and does not constitute investment advice, a recommendation to buy or sell any security, or a solicitation of any investment decision. RIAs are responsible for their own investment decisions and client suitability determinations.
See the conviction model live
We'll walk through a live scoring session on tickers from your current watchlist.
Request a Demo