Hero's Image

Crypto Momentum: a novel approach to factor-based investing

Primers

Factor-based investing is one of the most commonly used strategies by professional investors today. Factors are variables that can help maximize investment returns over time through a systematic exploitation of available data for a particular asset.

For example, when evaluating stocks within a portfolio an asset manager may consider each stock’s size, value, or growth characteristics and then give them a score based on this evaluation. Each of these represents a type of factor that can provide valuable information for the portfolio manager with regards to the stock’s relative performance.

Factor investing has been around for almost 50 years, but has become more popular as investors have challenged assumptions about the efficiency of markets. Factor-based strategies are designed to identify persistent sources of outperformance and potential excess return from certain explanatory variables.

Logo Hashdex
The material contained on this website is for informational purposes only and Hashdex, and its affiliates, is not soliciting any action based upon such material. The material is not to be construed as investment advice nor is it to be construed as recommendation, offer or solicitation to buy or sell any financial instrument or product or to adopt any investment strategy. Further, the material contained on this website does not constitute a representation that the financial instruments described therein are suitable or appropriate for any person. Past performance is not an indication of any future performance. This website may contain advertising of financial products.