After Identifiying Opportunities, a few questions still remain:

  1. How effective are the analysis methods and resulting metrics in predicting returns on investments?
  2. What is the optimal expected return on an investment?
  3. How long should an investment be held?

These are questions that we answer at Prime Cognos using event studies.  The image below presents a simple example of an event study:

This example shows the effectiveness of the MFI technical indicator against stocks that comprise the S&P 500 index between 2005 and 2015.