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Within our factor investing software, we have algorithmized the calculation of well-known Fama-French factors. In the application, you can see the performance of portfolios based on FF factors. Let’s see how we do it. Obtaining the necessary data To calculate… Read More »Calculating Fama-French 3 and 5 factors

Model error analysis provides insight into how model performance changes over time on normalized data. This insight allows us to monitor whether the model is consistent and stable in its predictions. Specifically, we look at two indicators. Mean absolute error… Read More »Model error analysis

Signal direction understanding For building investment strategies, it is important to understand that factor models can indicate two signal directions. The direction of the signal simply tells us whether the performance of the LongShort portfolio reaches plus values or vice… Read More »Creation of Long/Short investment strategies

Factor investing is an investment strategy that focuses on key performance drivers among asset classes. As mentioned previously in our blog, in the classical Fama-French 5-Factor Investing approach, those factors were: value, quality, momentum, size, and minimum volatility. However, in the Analytical Platform, we use a slightly different model for our purposes, let’s call it the 6-Factor (Groups) Model.

The world of statistics is filled with many complex concepts, but few are as misunderstood as the P-value. Despite its widespread use in research and quantitative analysis, it often confuses even the most seasoned statisticians. So, let’s break it down and make it easy to understand how the P-value can be used in factor analysis and AI-based stock analysis.

Statistics, as a branch of mathematics, is a powerful tool that aids in the interpretation and understanding of numerical data. One of the fundamental concepts in statistics is the T-statistic, which plays a crucial role in hypothesis testing and regression… Read More »Understanding T-statistic in AI Stock Analysis: A Simplified Approach

In this guide we will look at how to fund the Interactive Brokers account for non-US users. The first step after deciding that you want to start trading is funding your brokerage account. All of the Interactive Brokers’ accounts are… Read More »How to Fund the Interactive Brokers Account

“Best stock” is a term that is often advertised in a variety of contexts, and investors should pay close attention to how such an evaluation was made. The best stocks for dividends will probably be different than the best for… Read More »Best stocks picked by AI

The Fama-French method is a widely used model in portfolio management. Developed by Nobel laureate Eugene Fama and researcher Kenneth French, the model expands on the Capital Asset Pricing Model (CAPM) by adding two factors: size and value. Here is how you… Read More »How to Use the Fama-French Method in Real-Life Portfolio Management

Artificial Intelligence (AI) in the stock market industry could be a game changer, allowing investors to make data-driven investment decisions without any bias.I’ve always been intrigued by leveraging the power of artificial intelligence for stock market analysis and for building… Read More »Stock Analysis with The Power of AI