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Q) I would like to see the distribution that appears when stocks are lined up according to a specific factor
Lim SungHyun
posted Oct 9, 2020

I would like to see the distribution that appears when stocks are lined up according to a specific factor (in a ranking method). For example, if the operating margin is lined up in the order of high, there may be cases where the distribution is evenly distributed in this way: stocks with an operating margin of 5-stocks with an operating margin of 4-stocks with an operating margin of 3... On the other hand, the operating margin 10-operating margin 6-operating margin 5-operating margin 4-operating margin 1...may be quite irregular in this way.

How do I check this kind of distribution?

3 responses
Alec Zigurat
Oct 9, 2020

I think best way to test this is to see how histogram will look like. You can have it for both sorted and unsorted distribution.

Dan Whitnable
Oct 9, 2020

There are of course a lot of statistics methods to gauge distribution but a simple histogram is a great starting point to understand how factor values are distributed. Pandas makes this easy with the hist method (see https://pandas.pydata.org/pandas-docs/version/0.18.0/generated/pandas.DataFrame.hist.html).

Attached is an example. Hope this helps.

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Lim SungHyun
Oct 9, 2020

Thank you. I'll study by referring to the answers!

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The material on this website is provided for informational purposes only and does not constitute an offer to sell, a solicitation to buy, or a recommendation or endorsement for any security or strategy, nor does it constitute an offer to provide investment advisory services by Quantopian.

In addition, the material offers no opinion with respect to the suitability of any security or specific investment. No information contained herein should be regarded as a suggestion to engage in or refrain from any investment-related course of action as none of Quantopian nor any of its affiliates is undertaking to provide investment advice, act as an adviser to any plan or entity subject to the Employee Retirement Income Security Act of 1974, as amended, individual retirement account or individual retirement annuity, or give advice in a fiduciary capacity with respect to the materials presented herein. If you are an individual retirement or other investor, contact your financial advisor or other fiduciary unrelated to Quantopian about whether any given investment idea, strategy, product or service described herein may be appropriate for your circumstances. All investments involve risk, including loss of principal. Quantopian makes no guarantees as to the accuracy or completeness of the views expressed in the website. The views are subject to change, and may have become unreliable for various reasons, including changes in market conditions or economic circumstances.