A²PT · Strategy Learning Hub
Strategies, unpacked.
156 strategies. Learn the idea through a story, see the mechanics, then test the payoff against real observations.
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- 061Machine learning
Social media sentiment
Bernoulli Naive Bayes represents each word or text feature as present or absent, then combines class priors and conditional likelihoods. It is simple and interpretable, but semantics, sarcasm, bots, reposts, timestamps and sampling affect the signal. The posterior is a text-class score, not a market-return probability.
- 062Global macro
Fundamental macro momentum
Macro momentum maps trends in state variables—such as growth, trade, monetary policy or risk appetite—through each asset’s sensitivities into cross-asset exposures. Implementation requires point-in-time data vintages, release calendars, mixed frequencies and time-varying asset sensitivities.
- 063Event-driven & special situations
Trading on economic announcements
Announcement-day strategies build on research that average returns or risk compensation may differ on scheduled macro-news days. The rule holds equities on event days and cash otherwise. It depends on event definitions, release timing, intraday risk, data revisions and sample selection.
- 064Factors & multi-factor investing
Accruals／earnings quality
The accrual anomaly separates earnings into cash-flow and accrual components: high-accrual earnings may be less persistent, while prices may not fully distinguish them. Measures include total, operating and abnormal accruals and cash-flow quality. Definitions, sources and sample treatments are not interchangeable.
- 065Factors & multi-factor investing
Governance and shareholder rights
Governance factors sort firms on shareholder rights, takeover defenses, boards or activist ownership. The historical G-index study by Gompers, Ishii and Metrick found higher returns for stronger-rights firms in its sample; later evidence highlights variation by period, index and governance regime.
- 066Factors & multi-factor investing
Analyst forecasts and recommendations
Analyst signals include EPS revisions, recommendation changes, target prices, long-term growth expectations and forecast dispersion. Some studies find post-revision drift or lower returns among high-dispersion firms, but definitions and results vary. Consensus can hide outlier analysts and point-in-time availability.
- 067Factors & multi-factor investing
Investment／asset growth
Asset-growth strategies often go long firms with lower past asset growth and short those with higher growth. Cooper, Gulen and Schill document a negative relation between annual total-asset growth and subsequent stock returns. Explanations include investment/expected-return links and overoptimism; firm lifecycle, delisting bias and financing also matter.
- 068Factors & multi-factor investing
Illiquidity premium
The Amihud illiquidity measure proxies price impact with absolute return relative to dollar volume. Research tests whether expected returns and sensitivity to marketwide liquidity are compensated. Higher historical returns are not executable premium: capacity, spreads and crisis costs can consume it.
- 069Factors & multi-factor investing
Leverage and financial constraints
Leverage signals include debt relative to market equity, book leverage, net debt, operating leverage and financing-constraint indices. Market-leverage research can find a positive return relation, while book or operating leverage has different interpretations and may point the other way. This scenario separates two balance-sheet measures from user-entered basket returns.
- 070Factors & multi-factor investing
Balance-sheet composition
Balance-sheet factors include net operating assets (NOA), cash/assets, tangibility and liquidity. NOA growth can reflect accumulated non-cash earnings; related research links higher NOA with lower subsequent returns. Cash and tangibility capture different risks, opportunities or financing capacity and should not be collapsed into one score.
- 071Factors & multi-factor investing
Profitability／quality
Profitability signals include gross profits/assets, operating profitability/equity, ROA, ROE and asset turnover. Novy-Marx shows gross profitability on assets can complement value. Measures, industry structure, accounting classifications and costs affect results; high profitability does not guarantee higher future returns.
- 072Factors & multi-factor investing
Sales growth signals
Sales-growth signals include annual revenue growth, revenue surprises, backlog changes and sales growth relative to inventory or overhead. Markets may extrapolate extreme growth or underreact to durable improvement; direction depends on signal, horizon and expectations. This simulator illustrates a threshold rule without treating growth itself as return.