Factor Investing Software

Factor Investing Software – Use forces that move stock prices

Predicting prices is notoriously difficult, especially for longer time frames.
Factor investing takes a different approach.
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    Factor Analysis – What is it

    Market Returns

    It’s based on the idea that an asset’s returns can be predicted using relationship between the asset’s expected return and a number of variables that capture systematic risk. Those variables are called factors and they cover company’s financials, trends, macroeconomic conditions, etc.

    It is a useful tool to identify securities that may be temporarily mispriced, before the market eventually corrects and securities move back to their fair value.

    The main task of factor analysis is to determine the distribution of factors in the current market.

    Factors are the driving forces behind the market price movements. They explain why company B is doing better than company A.

    If we can discover and quantify major factors on current market, we can determine their influence to each company on the market. Company with bigger exposure to factors that drives prices up will do better than others.

    Look for factors that are generally independent and uncorrelated with one another. Combining exposure to multiple factors can actually decrease the volatility of a portfolio even while increasing the return.

    We have been developing factor investing software that provides insight into the importance of factors that move stock prices. You can find more information about factor investing in our articles. We especially recommend the article Are Higher Earnings Always Better? Case Study from S&P 100 and the article In Factor Investing Even Best Can Lose – Data-Driven Insights into Factor-Based Analysis.

    Factor Investing – Articles

    Trending Factors for AI-powered stock analysis (TAOTS 1st Month of 2024)

    Greeting investors! Welcome to our second Newsletter in 2024, in which we take a look at the Trending Factors from the first month of 2024. Factors are the building blocks for AI-powered stock market analysis, stock picking, and creation of the robust investment strategies.

    Demonstration of enhancing stock portfolio performance with AI-powered investment models

    Many investment analysts have pre-selected stock titles that they trust in the long run, hold them in their portfolios, and adjust their weightings now and then. In today’s article, we will take a look at how to work effectively with your stock universe and achieve better performance by leveraging machine learning and AI-powered stock-picking models (Learn more in our article Stock Analysis with The Power of AI).

    Dollar Cost Averaging – Configuration of Investment Strategies

    Welcome to the installment of our ‘Configuration of Investment Strategies’ series. In this article, we venture into the realm of Dollar Cost Averaging (DCA) and our table “Equity with investing” and its impact on investment strategies. DCA is a disciplined approach that involves making regular, fixed-dollar investments regardless of the asset’s price. It’s a strategy that aims to reduce the impact of market volatility on investment returns. Let’s delve into what Dollar Cost Averaging entails, exploring its positive aspects and potential drawbacks.

    Trending Factors for AI-powered stock analysis (TAOTS 52nd week)

    Greeting investors! Welcome to our first Newsletter in 2024, in which we take a look at the Trending Factors from the last week of 2023. With the new year also comes changes in our newsletters. We will now only report on trending factors once a month. However, weekly and daily reports will be available in our app! We will also try to present the topic more humanely. Similar to the article, we introduce factor investing using the example of love. So let’s delve into the world of factors from the previous week. Factors are the building blocks for AI-powered stock market analysis, stock picking, and creation of the robust investment strategies.

    Equity – Configuration of Investment Strategies

    Welcome to the installment of our ‘Configuration of Investment Strategies’ series, where we delve into the critical aspect of evaluating financial performance—the Equity at the end of the period table. Understanding how each investment strategy translates into actual returns is crucial for investors looking to make informed decisions and maximize their portfolio growth.

    The AP on the Street Annual Summary – Trending Factors in 2023

    Welcome all to our annual summary edition of the AP on the Street newsletter. This time around, instead of the usual weekly inventory, we’re taking a broader perspective, examining what moved the markets (Trending Factors) throughout the year 2023.