Paper: SSRN 2595747

Abstract

Value investing has been a part of the investment lexicon for at least the better part of a century. In particular the diversified systematic “value factor” or

Complexity vs Empirical Score

  • Math Complexity: 1.5/10
  • Empirical Rigor: 8.0/10
  • Quadrant: Street Traders — practical and empirical, lighter on theory

Why this score: The paper relies on accessible, industry-standard data for straightforward empirical tests, resulting in high empirical rigor, but uses minimal advanced mathematics or dense formulas, leading to low math complexity.

Research Flowchart

  flowchart TD
  A["Research Goal<br>Is the value factor robust<br>across time and geographies?"] --> B["Methodology<br>Longitudinal & cross-sectional analysis"]
  B --> C["Data Inputs<br>Global equities<br>Decades of historical data"]
  C --> D["Computational Process<br>Systematic value factor construction<br>Backtesting & attribution"]
  D --> E["Key Findings<br>Value factor persists but varies<br>Systematic implementation required"]