evaluate-factor

What problem does it solve?

This Skill eliminates the risk of selecting the wrong factor evaluation workflow for quantitative research, which leads to invalid or misleading conclusions about whether a factor predicts asset returns.

Core Features & Use Cases

• Workflow Routing: Automatically selects the appropriate cross-sectional or time-series factor evaluation workflow based on the number of symbols and research goal (e.g., stock selection vs. directional timing).
• Guardrails Enforcement: Enforces critical data requirements like forward-return alignment, multi-horizon testing, and transparency around sample size and turnover to avoid biased results.
• Use Case: For example, if a user wants to test if a value factor predicts 6-month returns for 80 mid-cap stocks, this Skill routes the task to the cross-sectional workflow to calculate IC, Rank IC, and ICIR metrics correctly.

Quick Start

Use the evaluate-factor skill to test whether the 3-month momentum factor predicts 1-month forward returns for the top 50 US large-cap stocks.