Insights

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

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Insights

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Industry Insights

Investing in Emerging Markets: Opportunities, Risks & Strategy

Should you invest in emerging markets? Our emerging market investment guide covers the benefits, risks, and strategies to empower you with data-based decisions.

2025.08.20 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 Investing Explained: Types of Factors & Strategy Guide

Factor investing targets quantifiable characteristics to improve returns. Explores common factors (macroeconomic and style types) and strategies in our guide.

2025.08.20 more
Industry Insights

Turning Industry Rotation into Alpha: A Quant Backtest Strategy

In our previous article” Shipping Leads, Semiconductors Follow? “we identified a recurring pattern in Taiwan’s market: rallies in the shipping sector often precede gains in semiconductor stocks. This article builds on that insight by transforming the observed rotation sequence into a quantitative investment strategy.

2025.08.13 more
Factor Investing

Factor Strategy – Capital Gain Overhang | Part 2 

In the previous study, we examined the Capital Gain Overhang (CGO) factor, designed to capture the behavioral bias known as the Disposition Effect. By measuring the gap between current market prices and investors’ average cost basis, CGO quantifies unrealized gains and losses at the market level. Empirical tests in Taiwan’s equity market confirmed that CGO is a meaningful predictor of future returns: high-CGO stocks consistently outperformed low-CGO stocks, generating significant positive alpha beyond standard Fama–French models, especially over medium- to long-term horizons.

2025.08.12 more
Factor Investing

Factor Research –Capital Gain Overhang | Part 1

The origins of the momentum anomaly have long been debated, with multiple competing explanations. Among them, one of the most influential behavioral interpretations attributes momentum to the Disposition Effect, a systematic bias in investor decision-making. This article focuses on the Capital Gain Overhang (CGO) factor, specifically designed to quantify this behavioral bias. Using the Taiwan equity market as a case study, we examine CGO’s predictive power as a stock selection indicator and evaluate its practical value through empirical analysis.

2025.08.12 more
Quant Research

Shipping Leads, Semiconductors Follow? A Data-Driven View on Taiwan’s Sector Rotation

Analyze industry rotation between Taiwan’s shipping and semiconductor sectors using momentum and valuation factors. This study reveals how factor-based strategies capture cyclical shifts—and why semiconductors ultimately outperformed over time.

2025.07.30 more
Quant Research

Starting from Robert Gaddie’s Stock-Picking Method: Searching for Small-Cap Growth Dark Horses in the Taiwan Stock Market

Discover how Robert Gaddie’s stock-picking method helps uncover hidden small-cap growth gems in Taiwan’s market. This strategy targets under-the-radar companies with earnings momentum and delivers strong backtested returns.

2025.07.15 more
Quant Research

Implementing Peter Lynch’s Investment Philosophy: A Quantitative Strategy Combining Growth and Value

Discover how Peter Lynch’s legendary investment philosophy can be applied to Taiwan’s stock market. This article builds a quantitative GARP strategy using TEJ data to identify undervalued growth stocks—and tests its performance over seven years.

2025.07.02 more
Quant Research

Derwood Chase’s Growth Momentum Stock-Picking Strategy: The Intersection of Value and Momentum

Discover how Derwood Chase’s value-momentum strategy—favoring low P/E stocks with strong price trends—delivers long-term outperformance in Taiwan’s market. Backtest results show strong alpha and lower drawdowns, proving the power of disciplined factor investing.

2025.06.17 more
Event & Alternative Signals

Forecasting Dividend Rebound Probability with Ex-Dividend Event Studies

Discover how TEJ’s ex-dividend event data and financial indicators help forecast stock rebound probability. Learn to identify high-yield Taiwan stocks with stronger post-dividend performance using TEJ’s point-in-time quantitative datasets.

2025.06.12 more
Quant Research

The Wisdom of Blue-Chip Stocks: Howard Rosman’s Prudent Path to Wealth

Rothman’s core investment philosophy is to “buy right and hold tight” or “buy strong and hold long.” He emphasizes selecting financially sound companies with stable and growing earnings, purchasing them at the right price, and holding them patiently for the long term. Without frequent portfolio adjustments, investors can achieve strong long-term returns. This simple yet resolute investment approach reflects Rothman’s practical wisdom and provides a clear, historically validated foundation for the strategy tested in this study.

2025.06.03 more