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Rule Based Investing: Designing Effective Quantitative Strategies for Foreign Exchange, Interest Rates, Emerging Markets, Equity Indices, and Volatility
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Rule Based Investing: Designing Effective Quantitative Strategies for Foreign Exchange, Interest Rates, Emerging Markets, Equity Indices, and Volatility

by Chiente Hsu
December 2013
Intermediate to advanced
192 pages
3h 13m
English
Pearson
Content preview from Rule Based Investing: Designing Effective Quantitative Strategies for Foreign Exchange, Interest Rates, Emerging Markets, Equity Indices, and Volatility

3. Rule Based Value Investment

Value in Emerging Markets

Value investing typically refers to the process of selecting single name stocks. Investors employ a variety of methods to determine and analyze a company’s true “value” using factors such as book value, price-to-earnings and book-to-market ratio. Starting with Fama and French1 numerous ratios have been derived to help investors in screening and selecting the best stocks to go long or short. Although value investing isn’t typically thought of as a rule based system, in truth it is because the guidelines and criteria of value investing are a series of rules and filters used to separate the mediocre stocks from the valuable. Rather than invest in a company because it’s become popular or because ...

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ISBN: 9780133354379Purchase book