Screening Metaverse Stocks with Market Capitalization and Moving Averages

Summary

This note outlines a Chinese equity screen for stocks associated with the metaverse theme, with circulating market capitalization above 10 billion yuan and a 20-day moving average above the 120-day moving average. The moving average comparison is used as a trend filter, while the sector and size criteria narrow the universe. The article also presents a final version that adds a price-to-earnings ratio below 50, along with examples intended to implement the selection process.

The note warns that a short-term moving average signal can reflect sentiment rather than a company’s underlying value, and that the original screen omits fundamental analysis. It suggests considering revenue, earnings, and cash flow. No backtest or performance evidence is given. The provided examples contain apparent inconsistencies in their market-capitalization threshold and data handling, so they should be reviewed before practical use.

Key ideas

• The screen selects metaverse-related stocks above a stated circulating market-cap threshold.
• A 20-day moving average above the 120-day average serves as a trend condition.
• The final selection rule also includes a price-to-earnings ratio below 50.
• The article notes that moving averages do not measure intrinsic value and supplies no performance results.

Tags

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