Screening Beverage and Alcohol Stocks with Turnover and Moving Averages

Summary

This note proposes a Chinese equity screen for beverage and alcohol related companies. Its stated conditions are turnover between 3% and 12%, membership in a beverage-and-alcohol category, and a 20-day moving average above the 120-day moving average. The industry filter is intended to narrow the universe, turnover to select stocks with a certain level of trading activity, and the moving-average relationship to identify an upward price trend. The Python example also introduces filters based on operating history, institutional holdings, and market capitalization, then ranks candidates by size.

The note acknowledges that the criteria are restrictive and omit other business and market factors; it suggests considering product quality, brand strength, and additional ranking factors. It provides no backtest or evidence of profitability. Implementation details are inconsistent: the example uses averages of grouped closing prices rather than a clear rolling daily series, and several additional filters are not part of the stated core logic. The screen therefore needs precise data definitions and validation before it can support a trading decision.

Key ideas

• The core screen combines beverage and alcohol sector membership, a turnover band, and a moving-average trend condition.
• The example adds operating history, institutional ownership, and market capitalization filters.
• The note recommends accounting for company characteristics beyond sector, turnover, and price trend.
• No backtest is reported, and the sample implementation does not clearly calculate rolling moving averages from daily prices.

Tags

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