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Answered

Quant Backtest Queries

anonymous 6 months ago in Product Features updated by SA Admin Shubham Shresth 1 month ago 7

Q1. For the claim "From January 4th, 2010 to June 30th, 2021, Seeking Alpha's very bullish Quant Stocks have beaten the S&P 500 index by 1755% vs. 379%.", could you please tell me exactly the buy conditions for each stock (assuming a score of >4.5), the number of stocks held, weightings of each stock, any rebalancing, and sell conditions to achieve these results?

Q2. When a premium membership is purchased, will I be able to have enough historical quant rating data to conduct my own backtesting analysis and develop my own portfolio strategies using a significant amount of data (e.g. 2010 - 2022)?

Thanks.

Correct Data/Behaviour

Answer

Answer

Hi there,

Thank you for reaching out.

I will get back on your first question.

Answering the second one, YES. You will have access to historical data.


Hope this helps! Feel free to reach out in case further assistance is required.

Regards,
Shubham Shresth
Data QA Analyst, Seeking Alpha

Finding this highly suspect. I just discovered that SOXX has a "Buy" rating, while SOXL has a "Strong sell". SOXL is based on SOXX. 

Answered

HI Patton,

We appreciate you reviewing the ETF grades. These two are completely different instruments and it is very transparent in the ETF factor grades and underlying factor grades (one click away from the ETF stock page). Notably, leverage carries significant risk, significantly higher expenses, and very different performance from a momentum score - YTD, SOXX is down 28% and SOXL is down 76%. Additionally, one ETF has a substantially higher dividend rate and this impacts a quantitative scoring system. From a data driven perspective, these are two completely different investment vehicles.


Hope this helps! Feel free to reach out in case further assistance is required.

Regards,
Shubham Shresth
Data QA Analyst, Seeking Alpha

Answer

Hi there,

Thank you for reaching out.

I will get back on your first question.

Answering the second one, YES. You will have access to historical data.


Hope this helps! Feel free to reach out in case further assistance is required.

Regards,
Shubham Shresth
Data QA Analyst, Seeking Alpha