This is a summary of links recently featured on Quantocracy as of Saturday, 04/25/2026. To see our most recent links, visit the Quant Mashup. Read on readers!
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The Skip-Month Mystery: What Last Month s Returns Are Really Telling You [Alpha Architect]New research challenges a long-standing rule in momentum investingand reveals surprising insights about when to use it For decades, investors using momentum strategies have followed a simple rule: ignore last months returns. This skip-month convention has been standard practice since the 1990s, designed to avoid short-term reversal effects where stocks that jump up one month tend to
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Unsupervised Learning for Trading: K-Means, PCA & Python Examples [Quant Insti]In the previous blogs, we examined supervised learning algorithms like linear regression in detail. In this blog, we look at what unsupervised learning is and how it differs from supervised learning. Then, we move on to discuss some use cases of unsupervised learning in investment and trading. We explore two unsupervised techniques in particular- k-means clustering and PCA with examples in Python.
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Research Review | 24 April 2026 | Prediction Markets [Capital Spectator]Who Wins and Who Loses In Prediction Markets? Evidence from Polymarket Pat Akey (ESSEC Business School), et al. April 2026 We study pricing efficiency in decentralized prediction markets by comparing marketimplied probabilities from Polymarket with benchmarks derived from option-implied riskneutral distributions extracted from the derivatives market. We study Bitcoin and Ethereum prediction bets