Ranking universes of stocks is a huge subject in quantitative finance. Ranking systems can be used to make money through long-short equity strategies, and equities can be ranked on anything from fundamental value factors, to indicators, to pricing models. In this notebook we will discuss how to evaluate a ranking system and determine whether it is predictive of future returns.
We will be releasing a video lecture as well, watch this thread for a link. Find all of our lectures hosted permanently with videos at www.quantopian.com/lectures.