Omega Point Blog

Reflections On Quantamental Investing

Profitability

Factor Spotlight: Earnings Yield & Profitability

August 09, 2018

Hope your week is going well. Today, I wanted to highlight recent trends in the two key components of what is referred to as "Quality" - the Earnings Yield and Profitability factors.Our Factor Profile tool is currently indicating that Earnings Yield and Profitability are reaching simultaneous inflection points in our US model. As I'll show below, historically both of these factors have very...

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Omer Cedar
Omer Cedar

Long Term factor trends

May 18, 2018

We've received some great questions about our overbought/oversold indicators (please keep them coming!). One that I wanted to discuss this week is: "Why is it that when a factor is `Oversold`, we don't always see a major decrease in the return for that factor as it reverts?" In other words, sometimes we highlight a factor as Oversold when in reality its cumulative returns are not actually...

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Omer Cedar
Omer Cedar

Profitability, Momentum, & Size

May 04, 2018

Last week we highlighted Profitability (Quality) as a factor that was reaching an inflection point in both the US and Global markets. I wanted to provide a quick update there, as well as for the Momentum and Size factors that we've been tracking over the past couple of months.

Profitability (Global Market) 

 

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Omer Cedar
Omer Cedar

Profitability is at an inflection point

April 26, 2018

I wanted to highlight Quality as a factor that is hitting an inflection in both the US and Global markets. In our platform, Quality = Profitability, and is defined as a combination of return-on-equity, return-on-assets, cash flow to assets, cash flow to income, gross margin, and sales-to-assets.

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Omer Cedar
Omer Cedar