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Field lab: analysis of quantitative investment strategies constructing a multi-factor investment strategy optimized sector momentum

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Bibliographic Details
Summary:In the combined part a multi-factor investment strategy is constructed out of four different enhanced single factor strategies using an optimization to maximize the Sharpe ratio of the combined portfolio. In the individual part an optimized sector momentum strategy is constructed that consists of a combination of a long and a market-neutral long/short strategy utilizing a simple regime-switching process with the goal to minimize momentum crashes and achieve robust returns in all market states.
Main Authors:Beckonert, Lars
Subject:Quantitative investments Financial markets Factor investing Sector momentum Market neutral Regime switching
Year:2023
Country:Portugal
Document type:master thesis
Access type:open access
Associated institution:Universidade Nova de Lisboa
Language:English
Origin:Repositório Institucional da UNL
Description
Summary:In the combined part a multi-factor investment strategy is constructed out of four different enhanced single factor strategies using an optimization to maximize the Sharpe ratio of the combined portfolio. In the individual part an optimized sector momentum strategy is constructed that consists of a combination of a long and a market-neutral long/short strategy utilizing a simple regime-switching process with the goal to minimize momentum crashes and achieve robust returns in all market states.