Screening Metaverse Stocks with a Five-Day Average and Company Traits

Summary

The document outlines an equity screen for stocks in the metaverse theme. It selects companies whose closing price is above the five-day moving average and that meet a chosen company-characteristic filter. It also proposes considering whether valuations are reasonable, though it does not define the characteristic or valuation tests. The accompanying examples describe an industry filter and price-versus-moving-average condition, while the Python example uses a different, longer moving-average window.

The rationale is to combine a short-term price condition with company selection. The article warns that choosing company traits poorly could exclude suitable stocks, and that a price above a moving average does not establish fair value. It recommends adding fundamental measures such as valuation ratios and return on equity, tailoring valuation analysis to company type, and weighting selection criteria. No backtest, performance evidence, or operationally complete definition of the screen is provided.

Key ideas

• The screen targets stocks associated with the metaverse theme.
• It requires price to be above a short-term moving average and a selected company trait to be present.
• The company-trait and valuation filters are left for the user to define.
• The article recommends adding fundamental measures and assessing valuation separately.
• The provided code example uses a longer moving-average window than the stated five-day rule.

Tags

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