Screening Metaverse Stocks by Moving-Average Proximity, Size, and Profitability

Summary

This note proposes screening Chinese stocks associated with the metaverse theme using price proximity to a 10-day moving average, market capitalization below 10 billion yuan, and positive profitability indicators. The moving-average condition is framed as a way to capture a medium-term price context, while the size and earnings filters aim to limit the universe to smaller companies that are not reporting losses. Example formulas and Python logic illustrate applying the industry, price, size, and earnings conditions together.

The article cautions that thematic classifications may admit noisy or atypical firms, quarterly earnings can fluctuate, and market capitalization or profitability alone cannot establish value. It recommends adding trend and macroeconomic measures and examining the filters more carefully. No backtest, candidate list, or performance evidence is reported, so the rules remain a screening proposal rather than a validated investment method.

Key ideas

• The screen focuses on metaverse-related Chinese equities with market capitalization below 10 billion yuan.
• It looks for prices within roughly 5% of the 10-day moving average.
• Positive earnings measures are used as an additional quality filter.
• The post warns that theme labels and single financial metrics can produce noisy selections.

Tags

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