Henry Crutcher
How to analyze a factor without ranking in Equities Lab
Create a screen
Everything starts with creating a screen. Kånken Rucksac online So, onward!
Name your screen
Screeners with names can be found later. If you want to put your screens into categories, simply put MyCoolCategory: at the front.
Limit your stocks (marketcap)
You can type “Market Cap > 500m” here. You could alternatively type “mc > 500m”, keying on the capital letters. Or you could type “>”, hit return and fill in both boxes, one with marketcap and the other with 500m. Of course your assignment has you using a different cutoff, but that’s your problem 🙂
Add a new line
You can add lines by doing any of the following:
1.
…Henry Crutcher
This how-to shows how to create a strategy in Equities Lab, and how to do some basic analysis of it. For humor value, we take the point of view of a children’s book character, named Amelia Bedelia, who has no common sense. We have all felt this way some times.
Create A Screener
A quantitative mutual fund is a screener. We are channelling our inner Amelia Bedelia. She is a character in a series of children’s books that is totally lacking common sense. This makes these books great to read aloud, assuming you can stop laughing long enough to actually read.
…Sometimes it’s better to not reinvent the wheel. A number of our existing professors have allowed a few of their class assignments to be publicly available to other professors. You can import these assignments into your class environment and either use them as-is or change them to follow your syllabus. To do this simply follow the guide below –
1. Click on “Import/Copy Homework”
2. Choose a homework to import into your class
Not all homeworks created within Equities Lab are placed into our imports section. A few of our professors have graciously allowed us to use a few of their homework creations within the section – giving you a number of different assignments to import from a number of different universities.
…In order to combat this we allow professors, like you, to try the homework assignments before they are assigned. This ensures that the homework assignments can be completed before they are given to the students.
As a professor you are given both the ability to create homeworks from scratch as well as test those homeworks out to identify any possible problems your students may have.
…So you’ve just downloaded Equities Lab and are ready to set up your account for the class you’re teaching next semester. To successfully do this just follow the below steps –
1. Navigate to Account Settings
2. Click on “Create Course”
3. Name your course following the rules
4. Click on “Create new homework”
5. Name your homework
There are no rules to naming homeworks, but you should name it something that fits into the flow of your course.
6. Edit Passing Requirements
There are a wide range of editable fields within the homework environment. You can set a minimum/maximum standard deviation, monthly return, beta, drawdown, etc.…
Now, this flag looks incredibly simple, but whenever you see orange text in Equities Lab, it means that there is a deeper formula to explore. Clicking on that formula we are presented with the following –
Though the flag itself is simple, the underlying formula is not. Understanding and analyzing cash flow statements takes time. Thankfully, we can do it easily here by importing the Cash Flow Score – a number from 0 to 10 based on the above metrics. For each line that is true for a company, it will score 1 point. The lines look for the following –
- A company must be ranked in the bottom 35% of all companies within their sector for (total debt 1Q/free cash flow t12m) and free cash flow MUST be a positive number.
