This is a summary of links featured on Quantocracy on Friday, 11/20/2020. To see our most recent links, visit the Quant Mashup. Read on readers!
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A Primer on Survivorship Bias [Quant Rocket]What is survivorship bias, and why should you care about it? This post explains how survivorship bias can trick you into drawing faulty conclusions from your research, and what you need to know to avoid being tricked. What is survivorship bias? Equities datasets are said to have survivorship bias if they do not include stocks that delisted in the past due to bankrupties, mergers and acquisitions,
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Using Quality to Seperate Good and Bad Value Stocks [Alpha Architect]Running a marathon is similar to being a value investor, especially in recent years where it seems more like an ultra-marathon. Both activities are painful experiences that require the ability to suffer and persist through physically and emotionally straining times. Moreover, value investors always need to worry about the perennial dogs in their portfolio, which are stocks that are cheap and