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> As someone who works for a quantitative hedge fund, you wouldn't believe how many similar results I see of researchers showing a statistically significant pre
by OnlineGladiator 7y ago
> As someone who works for a quantitative hedge fund, you wouldn't believe how many similar results I see of researchers showing a statistically significant predictor of stock market returns. Almost every single one of them is garbage.
Are you able to share any that aren't (or weren't) garbage?
- jefftk 7y agoOnes that aren't garbage are valuable! Until the rest of the market adjusts, and then they're garbage.
- OnlineGladiator 7y agoHe could share past insights that are no longer relevant. I obviously don't expect him to give away a stock tip worth millions of dollars.
- jjeaff 7y agoExactly, there is no actionable publicly known indicator. Because the moment it becomes known by a large enough group of traders, it becomes useless.
- rbavocadotree 7y agoHere's a disappointingly simple and well known one: Momentum. It produces real, statistically significantly, excess risk-adjusted returns over an index. The remarkable thing is that it has been well known for decades, and continues to work. Many fortunes have been made by systematically exploiting it.