Sentences with phrase «single factor strategies»

As they get more confident, that's when they may consider switching in and out of different single factor strategies at the appropriate time.

Not exact matches

Finally, investors should consider diversifying using factor strategies, which historically have had relatively low correlations with each other, and lower than sectors and single stocks have with each other.

The factors that we have found to make more sense are value and quality, especially when they are combined into a single strategy.

Though there is no single universally recognised definition, the Nexus Approach is a strategy that acknowledges the interdependencies of environmental resources, notably water, energy and food, and considers not the individual components but the influencing factors on the broadest scale.

RAFI Multi-Factor Indices combine five single - factor strategies.

Asset allocation is the single most important factor in your investing strategy.

Almost all of the factors and smart beta strategies exhibit a negative relationship between starting valuation and subsequent performance whether we use the aggregate measure or P / B to define relative valuation.9 Out of 192 tests shown here, not a single test has the «wrong» sign: in every case, the cheaper the factor or strategy gets, relative to its historical average, the more likely it is to deliver positive performance.10 For most factors and strategies (two - thirds of the 192 tests) the relationship holds with statistical significance for horizons ranging from one month to five years and using both valuation measures (44 % of these results are significant at the 1 % level).

Because the performance of each factor may vary in different economic cycles, single - factor strategies can be used to express tactical portfolio tilts.

Despite the fact that many single - factor strategies have empirically delivered positive excess returns in the long run, they have suffered periods of substantial underperformance under certain market conditions due to their cyclicality.

Therefore, implementing this strategy in combination with other fundamental factors with lower overall portfolio turnover may be more practical than implementing it as a single - factor strategy.

Our stylized portfolios that blend six factors (volatility, value, quality, size, momentum, and dividend yield) with four different strategies (marginal risk contribution, minimum variance, Sharpe - ratio weighted, and equity weighted) demonstrated higher risk - adjusted returns than the S&P 500 ®, with a lower tracking error than most single - factor strategies (see Exhibit 1).

For example, a single - factor smart beta product may be used as part of a completion strategy in order to lend more exposure to lower beta stocks to an equity portfolio with a higher risk profile,» explains Mellon Capital.

While there is no one - size - fits - all single timing strategy, retirees who are considering claiming Social Security benefits should consider the following key factors to weigh any tradeoffs.

We find that a smart beta strategy diversified across factors substantially reduces tracking error relative to the average of the single - factor strategies, and dynamic rebalancing materially increases expected return relative to rebalancing to equal weights.

There are strategies targeting single risk - factor exposure (e.g., value, low volatility, momentum, quality, or size), those employing alternative weighting methods (e.g., fundamental, dividend, or equal weight) and a smaller, but expanding, set of multifactor strategies coming to market.

This is especially true if your policy is cancelled by your insurer — not having continuous insurance form a single company can be a negative factor in the rating strategies.

In addition, they propose a unique solution, one more akin to the types of strategies used by thoughtful clinicians — namely, children in need might be best identified not only through the presence of early behavioural signs and symptoms but also through the convergence of other indicators, such as well established risk factors for adverse outcomes independent from the behavioural indicators themselves (eg, single parent status, family poverty, neuropsychological functioning, etc).