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Factor Based Portfolio

Help your clients to grow wealth at a steady rate

The size factor represents the relationship between the size of a company and its future performance. Through their academic research, Fama & French (1992) found that in the long term, a portfolio of smaller size companies is consistently outperforming a portfolio of larger size ones. We can identify small size stocks by their market capitalization.

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The value factor represents the relationship between the company’s relative valuation, and it’s future performance. Through their academic research, Fama & French (1992) found that in the long term, a portfolio of relatively cheap companies is consistently outperforming a portfolio of relatively expensive ones. We can identify the cheapness of a company by a lower price to book ratio.

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The momentum factor represents the relationship between the stock's past and future performances. Through their academic research, Jagadeesh & Titman (1993) found that in the long term, a portfolio of previous winners is consistently outperforming a portfolio of past losers. We can identify winners by calculating their past 12 month's performance and omitting the last month.

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The volatility factor represents the relationship between the stock’s volatility and, it’s future performance. Through their academic research, Haugen & Heins (1972) found that in the long term, a portfolio of low volatility stocks is better in terms of risk adjusted-return than a portfolio of high volatility ones. We can identify low volatile stocks by their 1-year volatility.

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The profitability factor represents the relationship between the company’s profitability, and it’s future performance. Through his academic research, Robert Novy-Marx (2013) found that in the long term, a portfolio of companies with higher profitability is consistently outperforming a portfolio of companies with lower profitability. We can identify highly profitable companies by their gross profit to assets ratio.

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The investment factor represents the relationship between the company’s assets growth, and it’s future performance. Through their academic research, Sheridan & Wei (2004) found that in the long term, a portfolio of companies with lower asset growth is consistently outperforming a portfolio of companies with higher assets growth. We can identify lower investment companies by their 1-year asset growth.

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Select and combine different inputs to build your unique investment strategy.

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back-testing
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Analysis
Analysis
Analysis
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Features
  • Build portfolios with up to 50 stocks in one click.
  • Mix up to 6 factors to build your unique multifactor portfolio.
  • Diversify portfolio holdings through different markets including, United-States, Canada, United-Kingdom and the GCC area.
  • Over 25 advanced risk and performance metrics to unlock insights.
  • Over 18 years of historical data from professional-grade data providers.
  • Compare performance with selected benchmarks.
How does it benefit your customers?
benefits
Save Time
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Remove Emotional Bias
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Generate New Investment Ideas
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Increase The Probability to Beat The Market