Screening 2021 Listings by Turnover and Rising DEA

Summary

This note describes selecting stocks with turnover between 3% and 12%, a rising DEA measure, and a 2021 listing date. The proposed rationale is to combine a band of trading activity with a trend signal, while restricting the universe to recently listed firms. The article supplies a formula-style example and a short Python outline, and recommends combining technical and fundamental measures for broader assessment.

The author cautions that this date restriction excludes older companies that may still have potential and may overweight current market conditions at the expense of long-term business quality. No backtest, return figures, or evidence of predictive performance is offered. There is also a specification concern: the formula shown for the rising DEA condition is expressed through moving-average and difference comparisons, so its correspondence to a standard DEA calculation is unclear. The screen is best treated as a basic rule proposal that requires careful indicator definition and historical evaluation.

Key ideas

• The stated universe has turnover from 3% to 12% and a 2021 listing date.
• A rising DEA measure is intended to provide a trend filter.
• The date restriction may omit established companies and does not assess long-term value.
• The article provides no empirical performance evidence, and its formula’s DEA definition is unclear.

Tags

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