QuantRocket Blog

Posts for alphalens

Researching the Quality Factor with Alphalens and Zipline

Thu Sep 28 2023 by Brian Stanley

Buying high-quality stocks and avoiding low-quality ones can improve investment returns. In this post, I use Alphalens and Zipline to analyze the Piotroski F-Score, a composite measure of a firm's financial health and quality.

Financial Distress Factors: the Altman Z-Score and Interest Coverage Ratio

Thu Sep 07 2023 by Brian Stanley

Are rising interest rates straining balance sheets and increasing the risk of bankruptcies? This article investigates two financial distress factors, the Altman Z-Score and interest coverage ratio, to see if distress is on the rise and how it impacts stock returns.

What's Better, High Profit Margins or Improving Profit Margins?

Thu Jul 13 2023 by Brian Stanley

Should investors prefer companies with high profit margins or companies with improving profit margins? Is it better to own an unprofitable company that's getting better, or a profitable company that's getting worse? This post explores these questions by analyzing the profitability growth factor and how it interacts with the profitability and size factors to impact stock performance.

Analyzing the Profitability Factor with Alphalens

Wed Jun 28 2023 by Brian Stanley

How does a company's profitability affect its stock returns? In this post, I use Alphalens, a Python library for analyzing alpha factors, to investigate the relationship between operating margin, a profitability ratio, and future returns.