Screening Metaverse Stocks by Market Capitalization and Three-Year Returns

Summary

The document outlines a Chinese equity screen for stocks in the metaverse sector, using circulating market capitalization and historical returns as filters. Its initial description says to require market capitalization above a stated threshold and positive returns; the final rule instead specifies a three-year compound annual growth rate above 5%. It includes an indicator formula and a Python-style example that attempts to calculate the three-year return from adjusted daily prices.

The article suggests that this approach targets larger stocks with positive historical performance, while warning that it omits technical factors and that returns can be disrupted by events. It proposes considering valuation, growth, and technical indicators, and favoring stable long-term performance. There is no reported backtest, comparison, or evidence that these filters predict future returns. The criteria also differ across sections: the prose gives a market-cap threshold of 100亿元, while the formula shows 1,000,000,000, and the initial positive-return criterion differs from the final CAGR threshold. These inconsistencies should be resolved before implementation.

Key ideas

• The screen combines metaverse-sector membership with a circulating market-cap threshold and a return filter.
• The final rule uses a three-year compound annual growth rate above 5%, differing from the initial positive-return description.
• The article provides formula and Python-style examples for computing historical returns from adjusted prices.
• It notes that the screen omits technical and other factors and that event-driven changes can affect returns.
• No backtest evidence is provided, and the market-cap threshold is inconsistent between prose and formula.

Tags

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