Scientific Beta

Money Management: "A new study from Scientific Beta and Scientific Analytics has identified the risks of making changes to factor indices. The new paper examined the lack of consistency in factor indices and what risks of the index changes meant, with possible implications being inconsistent factor definitions, factor selection and portfolio construction principles."

Money Management 22/03/2019

"(...) A new study from Scientific Beta and Scientific Analytics has identified the risks of making changes to factor indices. The new paper examined the lack of consistency in factor indices and what risks of the index changes meant, with possible implications being inconsistent factor definitions, factor selection and portfolio construction principles. Another danger arising from those inconsistencies was the common methodological changes in the industry, which could potentially lead to striking differences in the performance of multi-factor indices, the paper said. Additionally, the other problems identified by the study included inconsistencies across time with data-mining risks and therefore the absence of any reliability of the performance presented. (...)"