Insights

In-depth research and data-driven insights on quantitative finance, factor investing, risk, and ESG from the TEJ research team.

Trending

Editor's picks from our research desk.

Insights

Browse all articles by topic.

Tag: Alpha
Factor Investing

Discovering Investment Factors through Point-in-Time Audited Financial Database

This study employs TEJ’s Point-in-Time Audited Financial Database to construct a composite factor for stock selection in Taiwan’s equity market. By preserving financial data exactly as available at each historical moment, the framework avoids look-ahead bias and ensures empirical reliability. We find that higher-ranked portfolios deliver significant short-term excess returns, while predictive power weakens over longer horizons. The results highlight the practical value of Point-in-Time financial data for quantitative factor investing and underscore its role in building replicable, data-driven investment strategies.

2025.10.07 more
Market Knowledge & Data Guides

What are Alpha Signals & How are They Used in Trading?

Alpha signals are metrics that show portfolio outperformance potential. Learn how they’re generated and applied in trading, and the challenges of using them.

2025.08.20 more
Factor Investing

Factor Strategy – Idiosyncratic Volatility | Part 2 

Building on the statistical foundation presented in Part 1, this article explores how Idiosyncratic Volatility (IVOL) can be effectively applied in investment strategy design. We present two categories of approaches: a single-factor sorting model and a set of filter-enhanced momentum strategies. Through robust backtesting across two decades of Taiwan stock market data, we demonstrate how IVOL can improve risk-adjusted performance when used as a portfolio filter—especially when combined with momentum or dividend-based signals.

2025.05.28 more
Factor Investing

Factor Research – Idiosyncratic Volatility | Part 1

In recent years, the low-volatility anomaly has gained widespread attention for challenging traditional asset pricing theory. This article takes a closer look at one key driver behind the anomaly—Idiosyncratic Volatility (IVOL)—through a comprehensive analysis of the Taiwan stock market. Using point-in-time data from the TEJ Factor Library, we investigate the statistical behavior of IVOL, its relationship with stock characteristics, and its implications for cross-sectional return prediction.

2025.05.28 more
Factor Investing

Analyzing Factor Performance with Alphalens: Price and Volume Factors

In investment decision-making, price-volume factors are essential for investors to gain insights into market behavior. The relationship between price and trading volume supply and demand dynamics of an asset also reveals capital flows and shifts in market sentiment. These factors play a crucial role in capturing short-term opportunities and identifying potential risks in asset allocation.

2025.02.07 more