Q2: Jessica Stauth – Seeking Alpha? Try Alpha Factors
Chat With Traders
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The Difference Between Alpha Factor and Risk Factor
A factor is like a single number per stock per day or per minute right so it's like a piece of data like Delaney said it could be a return stream. It should actually have power of predicting the direction of your returns the sign of your returns whereas the risk factor and we'll talk about what they what some of them are is something that at best you hope is going to potentially be predictive of sort of the volatility of the returns going forward.
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