After Identifiying Opportunities, a few questions still remain:
- How effective are the analysis methods and resulting metrics in predicting returns on investments?
- What is the optimal expected return on an investment?
- 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.
