Metaverse Stocks Screened by Turnover and Five-Year ROE

Summary

This Chinese equity screen focuses on metaverse-related stocks with prior-day actual turnover between 3% and 28% and return on equity above 15% for five consecutive years. The note interprets turnover as a measure of trading activity and persistent ROE as a sign of sustained profitability. It provides example screening expressions and a Python outline for combining industry membership, turnover, and annual financial data.

The document reports no backtest or other evidence that the criteria predict returns. It notes that ROE alone can omit important financial and technical information, and that high profitability does not remove risks in a fast-changing industry or unstable market. Suggested refinements include adding valuation or technical factors, ranking firms by ROE instead of relying on a rigid cutoff, and adapting criteria to market conditions. The sample code uses a dated data query and annual resampling, so the precise interpretation of “prior day” and the five-year financial window should be checked against the data source before use.

Key ideas

• The screen requires metaverse-sector membership and prior-day actual turnover between 3% and 28%.
• It also requires ROE above 15% for five consecutive years.
• The note offers sample formulas and a data-processing outline but no return or backtest evidence.
• ROE may overlook valuation, other financial measures, and future changes in the sector.
• Thresholds and financial windows should be matched carefully to the data provider's conventions.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.