TL;DR
Multi-factor screening in BIST allows investors to filter stocks using criteria such as momentum, value, and quality, enabling better selection. This method helps narrow down investment opportunities.
7 min readA practical guide to combining multiple criteria on BIST. An important part of the stock screening process.
How to Apply
Use Borsafolio's stock screener to perform this type of screening. Narrow results using momentum, value, and quality factors.
Key Considerations
Screening results are not investment decisions. Evaluate alongside sector analysis and deepen with fundamental analysis. Measure risk-adjusted performance with the Sharpe ratio.
Screen BIST stocks with 13 different filters.
Open Screener →Related articles: Stock Screening Guide, Sector Analysis, Sharpe Ratio.
Frequently Asked Questions
What is multi-factor screening?
Multi-factor screening is the process of evaluating stocks based on multiple criteria. This approach helps investors make more comprehensive and informed decisions.
What is the momentum factor?
The momentum factor measures the strength of stock price movements. High momentum typically indicates that the price is trending upward.
How is the value factor calculated?
The value factor usually analyzes how low or high a stock's price is relative to its fundamental value (e.g., P/E ratio). A low valuation is often seen as a potential investment opportunity.
What is the quality factor?
The quality factor includes criteria that assess a company's financial health and performance. For example, high ROE (return on equity) and margins are among the quality criteria.
How is the Sharpe ratio calculated?
The Sharpe ratio is used to measure the risk-adjusted return of an investment. The calculation formula is: (Portfolio return - Risk-free return) / Portfolio standard deviation.
This content does not constitute investment advice. Past performance is not a guarantee of future results. Make your investment decisions based on your own risk profile.
