Stock Quant Tremor Is a Field Day for Geeks

The popularity of factor investing has exploded since the turn of the century as firms like AQR Capital Management and Dimensional Fund Advisors …

(Bloomberg) — For a stock market that has sat almost completely still for two days, this one is proving an irresistible laboratory for a brand of geeky equity analysis that has been gaining influence for a decade.

You wouldn’t know it from benchmarks, but beneath a tranquil surface violent swings are lashing traders. Companies like real-estate firms that rose the most in 2019 are plunging, and some that have trailed pushed out front. It’s been a mild reckoning for hedge funds and others who have bet on the status quo.

Amid all the churn has been a renewed focus on a quantitative concept known as factor investing, which groups companies not by industry but traits such as how fast their prices move or profits rise. A question gaining currency in the past few days is whether these categories are just handy descriptions of twists in the market — or are at some level guiding them.

“It seems very mechanical right now,” said John Swarr, investment specialist at Penn Mutual Asset Management, which has $27 billion under management. “If you look within some of these stocks that are being hit the hardest, some are in much better shape than others and yet they’re all being affected similarly,” he said. “It does feel like it’s a rules-based rotation.”

Whether any of it matters, some of the moves have been historic and cast an interesting lens on how the 2019 market evolved. Take the momentum factor, which collects stocks that are rising the fastest. Right now, that means owning groups like REITs and utilities that shone brightest amid a protracted Treasury rally, while betting against oil explorers and banks that have fallen behind.

Both those trends reversed this week. A Dow Jones market neutral momentum index fell more than 4% two days in a row, notching its biggest plunge in a decade. On the flip-side, a similar index tracking value or cheap stocks just registered its best two-day streak since at least 2002, when the gauge was created.

The popularity of factor investing has exploded since the turn of the century as firms like AQR Capital Management and Dimensional Fund Advisors built empires on the proposition that groups selected by traits like size and value would beat the market over time. Assets devoted to the strategy’s public-facing incarnation, smart-beta exchange traded funds, have risen 10-fold from 2009 to almost $900 billion.

So much money is tied to the strategies that a cottage industry has formed on Wall Street to analyze how changing tastes for factors are affecting institutional investors and even the path of individual stocks.

But disentangling the dog from its tail is hard because every time factor preferences are used to explain a swing in shares or groups of companies, a simpler, fundamental explanation tends to exist alongside it. Sure, industries like real estate, utilities and healthcare may suddenly be falling because people turned sour on “momentum” — or simply because Treasury yields are up. Banks and energy companies may be getting lifted by a rotation into their cheap-stock “value” cohort — or it may just be people betting on a stronger economy.

“It’s an odd set of bedfellows,” Sameer Samana, senior global market strategist for Wells Fargo Investment Institute, said by phone. “You’ve got a sell-off going on, but defensives like utilities and REITs are underperforming. Best I can tell is there’s this rotation from, call it growth stocks, high-momentum stocks, to more value-oriented parts of the market that were left behind.”

To be sure, the danger of a stock or industry moving because it has fallen in or out of favor with big investors has always existed, but any time quants get mentioned, concern will be voiced in certain quarters that correlated trades will amplify swings. It doesn’t usually play out. One episode that routinely — many would say lazily — gets trotted out in times of factor duress is a period in late 2007 when many systematic firms got caught on the wrong side of momentum trades and the market briefly buckled.

Most professionals say drawing the parallel now is misguided.

“Bonds were just so overbought that the backup in bond yields and investors probably taking some profits in Treasuries has caused ripple effects in markets,” said Matthew Miskin, co-chief investment strategist at John Hancock Investment Management. “So financials, regional banks all are getting a bid, which is really a catalyst for value rotation, the lack of sustained rally out of momentum. So bond yields likely are the largest factor that is causing all this market rotation to develop.”

–With assistance from Brendan Walsh.

To contact the reporters on this story: Sarah Ponczek in New York at sponczek2@bloomberg.net;Vildana Hajric in New York at vhajric1@bloomberg.net

To contact the editors responsible for this story: Jeremy Herron at jherron8@bloomberg.net, Chris Nagi

For more articles like this, please visit us at bloomberg.com

©2019 Bloomberg L.P.

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Performance Recap on Shares of Nvidia Corp (NVDA)

Share Performance Review. Taking a quick look at recent session activity on shares of Nvidia Corp (NVDA), we can see that the stock price recently hit …

Share Performance Review

Taking a quick look at recent session activity on shares of Nvidia Corp (NVDA), we can see that the stock price recently hit 178.65. At the open, shares were trading at 178.8. Since the start of the session, the stock has topped out with a high of 181.09 and bottomed with a low of 177.12. After noting current price levels, we can see that the change from the open is presently -1.09.

At some point, individual investors may find themselves routinely falling prey to the lure of performance chasing. It can be highly tempting to want to be a part of a near-term stock run to the upside. Short-term investors may only be interested in these types of moves, but longer-term investors may want to be a bit more cautious. Chasing performance may end up leading the investor away from previously defined goals and the overall strategy. Investors who are committed to achieving long-term success may occasionally need to reshuffle the deck when the short-term clatter becomes too noisy.



Earnings Focus

Nvidia Corp (NVDA) last reported earnings results on 8/15/2019. For the most recent period, the company posted quarterly EPS of 1.24. The trailing 12 month earnings number is currently 3.83. The company’s EPS growth over the previous quarter clocks in at 35.82%. The EPS metric is frequently used to measure a company’s profitability based on each outstanding share of common stock.

Investors might be trying to figure out an investment plan that is right for them. Some may opt to go with a short-term plan, and others may choose to invest in stocks for the long haul. The thought of creating a defined plan may be overwhelming to some. Comparing the plusses and minuses of both may be a good way to start forming a strategy. Investing for the short-term may offer chances to capitalize on gains over a few weeks or months. There may be more fluctuations to deal with in the short-term, but the rewards may be greater if managed properly. One drawback of investing for the short-term is that it may involve more risk. The element of correct timing comes into play when trying to enter or exit a position, which may not be for everyone. Investing for the long-term may be a safer way to go as investors are typically looking for smaller gains over a longer period of time.

Relative Strength

Investors may be tracking various technicals on shares of Nvidia Corp (NVDA). We can see that the 9 day relative strength value is currently 66.56%. This technical momentum indicator compares the size of recent gains to recent losses helping to identify possible overbought and oversold conditions. The 9 day historical volatility reading is currently 40.99%. This measures the average deviation from the average price spanning the past 9 days. The current 9 day MACD has been spotted at 7.46. This value represents the difference between a short-term and a long-term moving average. A reading over zero may provide a bullish signal, and a value under zero may represent a bearish signal.

Focusing in on some other information, we can see that Nvidia Corp (NVDA) has a current weighted alpha of -21.4. The weighted alpha gauges how much the stock has increased or decreased over the period of one full year. The weighting puts higher emphasis on more recent activity providing a more relevant measure for short-term technical analysts to use. A positive weighted alpha reading indicates that the stock has risen over the past year. A negative reading would indicate that the stock is down over that same time period. Technical traders often use the weighted alpha to help discover stocks that are building momentum.

Investors are always trying to get an advantage in the equity market. Everyone wants to find that next great stock pick that provides a solid boost to the portfolio. Investors often identify risk preference when trying to sort out asset allocation. In general, a higher amount of risk may offer a greater potential for growth. Many investors may struggle with the concept of leaving emotion out of picking stocks. Equity research may involve a high degree of patience, determination, and lots of homework. Learning everything possible about the markets can help the individual investor better navigate the waters. As the old saying goes, knowledge is power. Being able to filter through the data to determine what is relevant information may assist the investor with making those tough investment decisions.

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Stock Performance Review on Shares of Anaplan, Inc. (PLAN)

Stock Performance View. Tracking current trading session activity on shares of Anaplan, Inc. (PLAN), we can see that the stock price recently hit 51.89.

Stock Performance View

Tracking current trading session activity on shares of Anaplan, Inc. (PLAN), we can see that the stock price recently hit 51.89. At the open, shares were trading at 53.41. Since the start of the session, the stock has topped out with a high of 53.64 and bottomed with a low of 51.58. After noting current price levels, we can see that the change from the open is presently -1.63.

At some point, individual investors may find themselves routinely falling prey to the lure of performance chasing. It can be highly tempting to want to be a part of a near-term stock run to the upside. Short-term investors may only be interested in these types of moves, but longer-term investors may want to be a bit more cautious. Chasing performance may end up leading the investor away from previously defined goals and the overall strategy. Investors who are committed to achieving long-term success may occasionally need to reshuffle the deck when the short-term clatter becomes too noisy.



Earnings Focus

Anaplan, Inc. (PLAN) last reported earnings results on 8/27/2019. For the most recent period, the company posted quarterly EPS of -0.12. The trailing 12 month earnings number is currently -1.68. The company’s EPS growth over the previous quarter clocks in at -6.90%. The EPS metric is frequently used to measure a company’s profitability based on each outstanding share of common stock.

Investors might be trying to figure out an investment plan that is right for them. Some may opt to go with a short-term plan, and others may choose to invest in stocks for the long haul. The thought of creating a defined plan may be overwhelming to some. Comparing the plusses and minuses of both may be a good way to start forming a strategy. Investing for the short-term may offer chances to capitalize on gains over a few weeks or months. There may be more fluctuations to deal with in the short-term, but the rewards may be greater if managed properly. One drawback of investing for the short-term is that it may involve more risk. The element of correct timing comes into play when trying to enter or exit a position, which may not be for everyone. Investing for the long-term may be a safer way to go as investors are typically looking for smaller gains over a longer period of time.

Relative Strength

Investors may be tracking various technicals on shares of Anaplan, Inc. (PLAN). We can see that the 9 day relative strength value is currently 34.55%. This technical momentum indicator compares the size of recent gains to recent losses helping to identify possible overbought and oversold conditions. The 9 day historical volatility reading is currently 51.96%. This measures the average deviation from the average price spanning the past 9 days. The current 9 day MACD has been spotted at -1.71. This value represents the difference between a short-term and a long-term moving average. A reading over zero may provide a bullish signal, and a value under zero may represent a bearish signal.

Focusing in on some other information, we can see that Anaplan, Inc. (PLAN) has a current weighted alpha of 98.3. The weighted alpha gauges how much the stock has increased or decreased over the period of one full year. The weighting puts higher emphasis on more recent activity providing a more relevant measure for short-term technical analysts to use. A positive weighted alpha reading indicates that the stock has risen over the past year. A negative reading would indicate that the stock is down over that same time period. Technical traders often use the weighted alpha to help discover stocks that are building momentum.

Investors are always trying to get an advantage in the equity market. Everyone wants to find that next great stock pick that provides a solid boost to the portfolio. Investors often identify risk preference when trying to sort out asset allocation. In general, a higher amount of risk may offer a greater potential for growth. Many investors may struggle with the concept of leaving emotion out of picking stocks. Equity research may involve a high degree of patience, determination, and lots of homework. Learning everything possible about the markets can help the individual investor better navigate the waters. As the old saying goes, knowledge is power. Being able to filter through the data to determine what is relevant information may assist the investor with making those tough investment decisions.

Stock Performance View

Tracking current trading session activity on shares of Anaplan, Inc. (PLAN), we can see that the stock price recently hit 51.89. At the open, shares were trading at 53.41. Since the start of the session, the stock has topped out with a high of 53.64 and bottomed with a low of 51.58. After noting current price levels, we can see that the change from the open is presently -1.63.

At some point, individual investors may find themselves routinely falling prey to the lure of performance chasing. It can be highly tempting to want to be a part of a near-term stock run to the upside. Short-term investors may only be interested in these types of moves, but longer-term investors may want to be a bit more cautious. Chasing performance may end up leading the investor away from previously defined goals and the overall strategy. Investors who are committed to achieving long-term success may occasionally need to reshuffle the deck when the short-term clatter becomes too noisy.



Earnings Focus

Anaplan, Inc. (PLAN) last reported earnings results on 8/27/2019. For the most recent period, the company posted quarterly EPS of -0.12. The trailing 12 month earnings number is currently -1.68. The company’s EPS growth over the previous quarter clocks in at -6.90%. The EPS metric is frequently used to measure a company’s profitability based on each outstanding share of common stock.

Investors might be trying to figure out an investment plan that is right for them. Some may opt to go with a short-term plan, and others may choose to invest in stocks for the long haul. The thought of creating a defined plan may be overwhelming to some. Comparing the plusses and minuses of both may be a good way to start forming a strategy. Investing for the short-term may offer chances to capitalize on gains over a few weeks or months. There may be more fluctuations to deal with in the short-term, but the rewards may be greater if managed properly. One drawback of investing for the short-term is that it may involve more risk. The element of correct timing comes into play when trying to enter or exit a position, which may not be for everyone. Investing for the long-term may be a safer way to go as investors are typically looking for smaller gains over a longer period of time.

Relative Strength

Investors may be tracking various technicals on shares of Anaplan, Inc. (PLAN). We can see that the 9 day relative strength value is currently 34.55%. This technical momentum indicator compares the size of recent gains to recent losses helping to identify possible overbought and oversold conditions. The 9 day historical volatility reading is currently 51.96%. This measures the average deviation from the average price spanning the past 9 days. The current 9 day MACD has been spotted at -1.71. This value represents the difference between a short-term and a long-term moving average. A reading over zero may provide a bullish signal, and a value under zero may represent a bearish signal.

Focusing in on some other information, we can see that Anaplan, Inc. (PLAN) has a current weighted alpha of 98.3. The weighted alpha gauges how much the stock has increased or decreased over the period of one full year. The weighting puts higher emphasis on more recent activity providing a more relevant measure for short-term technical analysts to use. A positive weighted alpha reading indicates that the stock has risen over the past year. A negative reading would indicate that the stock is down over that same time period. Technical traders often use the weighted alpha to help discover stocks that are building momentum.

Investors are always trying to get an advantage in the equity market. Everyone wants to find that next great stock pick that provides a solid boost to the portfolio. Investors often identify risk preference when trying to sort out asset allocation. In general, a higher amount of risk may offer a greater potential for growth. Many investors may struggle with the concept of leaving emotion out of picking stocks. Equity research may involve a high degree of patience, determination, and lots of homework. Learning everything possible about the markets can help the individual investor better navigate the waters. As the old saying goes, knowledge is power. Being able to filter through the data to determine what is relevant information may assist the investor with making those tough investment decisions.

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Basic Materials Stock Roundup: Laredo Petroleum (LPI)

Laredo Petroleum (LPI) negotiated the trading capacity of 2135194 shares and observing the average volume of last three months the stock traded …

Laredo Petroleum (LPI):

Laredo Petroleum (LPI) negotiated the trading capacity of 2135194 shares and observing the average volume of last three months the stock traded 5808.72K shares. The Stock has market cap of $625.48M and relative volume of 0.74.In addition to price, analysts use volume trends to predict future performance. The level of trading activity in a stock is often a good proxy for the level of interest and enthusiasm for the name within the investment community.

Every trading day indicate diverse behavior and trends about Laredo Petroleum (LPI) stock. Here we noted the different factors that seen during current trading session of Thursday. At the end of the day, it’s only a stock’s performance that matters. Active investor focuses on important indicators those changes daily in trading session that includes where the Laredo Petroleum stock price change moved UP, DOWN or UNCHNAGE? What is market trading price of stock? How much shares are traded? What is market worth of stock? What technical say? How much stock is volatile?

Share of Laredo Petroleum (LPI) have caught the attention of the Wall Street community. The stock price is settled at $2.56 after trading hours. Taking a look at the daily price change trend and size of price movement it is recorded that LPI spotted a positive behavior with drift of 3.23%.

Laredo Petroleum (LPI) stock has been separated -24.40% away from the 200-day MA. Tracking current stock price levels in relation to some other popular moving averages, we have noted that the stock is trading -9.59% away from the 50-day MA and -6.69% off of the 20-day MA. Checking on recent price levels compared to prior highs and lows, we have seen that Laredo Petroleum (LPI) recently traded -25.26% away from the 50-day high and moved 9.87% from the 50-day low. Taking a wider observation, the current separation from the one year high is -71.65%, and the distance from the one year low is presently 9.87%.

Laredo Petroleum (LPI) stock gained attention from Active Investors. Active investors purchase investments and continuously monitor their activity in order to exploit profitable conditions. Active investing is highly involved. Unlike passive investors, who invest in a stock when they believe in its potential for long-term appreciation, active investors will typically look at the price movements of their stocks many times a day. Typically, active investors are seeking short-term profits. Active investing is an investment strategy involving ongoing buying and selling actions by the investor typically for no more than one day.

The stock dispatched -7.81% performance during the quarter and performance arrived at -27.70% over the last six months. In the last month, the price performed -18.42%. Shares are now at -70.72% over the past year and year to date performance pointed at -31.49%. Contracting the focus on performance, delivered a move of -13.59% over the last week.

The stock has a beta of 1.58 compared to a beta of 1 for the market, which implies that the stock’s price movements are more extreme than the market as a whole. The stock therefore has above average level of market risk. During the past week, the stock’s average weekly volatility was 7.81% and 8.53% volatility over the past 30 days.

Wall Street Analysts suggested rating of 2.6. This rating is on a scale of 1 to 5. A rating of a 1 or a 2 would signify a mean Buy view. A rating of 4 or 5 would specify a mean Sell opinion. A rating of 3 would show a mean Hold recommendation. Captivating a peek at sell-side analyst insights, we can understand that the recent mean target price for the company is $4.43.


Ashton Kilfoyle

Ashton Kilfoyle says that his huge experience in 8 years, gives him priority among others. He worked for different national and international companies. He has unique insights into the investments for oil and gas field. He likes to share his predictions and analysis with readers. He still creates profitable equity portfolios for his clients.Ashton has worked as an auditor for many years but is currently working as a business journalist so that he can work remotely and travel with his wife while she works as a travel nurse for several years. Ashton specializes in stock, gas and oil investments, dividends. He is a well-known person in business world.Address: 57 Bowden Street, LILYFIELD, New South WalesEmail: [email protected]Zip code: 2040Contact # (02) 9823 5083