Tools Overview

When we use or introduce an important or unique tool in our analysis flow, it will be described in a post in the Tools category.

To analyze how potential investment strategies might work, we will evaluate our ideas with a few key methods. One method we will focus on first is longitudinal portfolio analysis: forming “portfolios” of companies after ranking them by some method we would like to test, then regularly tracking the performance of the portfolios over time by tracking each individual company and aggregating results by portfolio.

A few key tools are needed to provide this analysis method. We will need:

  • A database
  • A way to define and determine the universe of companies we’ll work with
  • Functions to select and rank companies
  • To form and track portfolios
  • To report and/or visualize the results
  • Statistical analysis of the results to assess predictive power

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