Columbine Alpha Factor
What is the service?
A proprietary, quantitative model - the Columbine Alpha Factor - evaluates each stock's price behavior during the past year and forecasts its expected excess return (alpha) from price momentum over the next six to twelve months.
What makes it different?
- Pure measure of price action
- Unique risk-adjusted methodology
- Takes volatility into account
- Designed for institutional holding periods
- Proven track record-published since 1979
Who should use it?
Portfolio managers and analysts interested in adding an objective, quantitative measure of equity price momentum to their stock selection system
What do I receive?
Weekly rankings (1 to 10, see the graph below) for 6,000+ US stocks from the Columbine Alpha Factor that characterize each stock's expected alpha
What do the rankings mean?
How do I get the rankings?
- Electronically via the Internet (E-mail or FTP)
- Baseline, FactSet, Ford systems
- Hard copy reports via overnight express & fax
 |
Click to download a sample of the current model report (PDF format) |
How has it performed?
How is it computed?
To compute the Columbine Alpha Factor we apply a proprietary weighting structure to each stock's weekly price changes for the past year and the market's weekly changes over the same period. Using a specialized regression technique we estimate each stock's alpha coefficient from this weighted data and sort the stocks on these alphas.
How do I use it?
We recommend using the Columbine Alpha Factor as an adjunct, or overlay, to more conventional security analysis. Our research (and our clients' experience) amply demonstrates the synergistic benefits - improved return and reduced portfolio risk of adding Columbine Alpha price momentum to fundamental analysis.
How can it help me?
- Source of Buy ideas
- Objective replacement for technical analysis
- Enhance the timing of buys and sells
- Forecast industry & sector performance
- Replace naïve relative strength models
- Input into proprietary multifactor model
Click here for more information on the Columbine Alpha Service
Top
|
