Time to market
factor.formula
Here, we assume that there are an average of 30 days in a month and calculate the number of months the company has been listed. A more accurate calculation method is to divide the actual number of days by the average number of days in a month.
This formula calculates the number of months that have passed since the company went public, where:
- :
The date at the end of the current reporting period, which is the point in time when the factor is calculated.
- :
The date of the company's initial public offering (IPO).
- :
The duration of the company's listing, in months.
factor.explanation
In quantitative investment, the length of time a company has been listed is considered an important risk factor. Generally speaking, companies that have been listed for a longer time usually have more mature business models, more transparent corporate governance, more stable profitability, and richer market experience, so their risk premium may be lower. However, some studies have also found that newly listed companies may obtain higher investment returns due to their high growth. Therefore, this factor is not a simple linear relationship and may show different effectiveness in different market environments and industries. This factor is often used in combination with other fundamental factors, growth factors, and valuation factors to construct a more comprehensive investment strategy. In addition, it is necessary to consider the impact of IPO rules in different markets on the length of time a company has been listed and make corresponding adjustments.