{"product_id":"causal-factor-investing-can-factor-investing-become-scientific-9781009397292","title":"Causal Factor Investing: Can Factor Investing Become Scientific?","description":"Virtually all journal articles in the factor investing literature make associational claims, in denial of the causal content of factor models. Authors do not identify the causal graph consistent with the observed phenomenon, they justify their chosen model specification in terms of correlations, and they do not propose experiments for falsifying causal mechanisms. Absent a causal theory, their findings are likely false, due to rampant backtest overfitting and incorrect specification choices. This Element differentiates between type-A and type-B spurious claims, and explains how both types prevent factor investing from advancing beyond its current phenomenological stage. It analyzes the current state of causal confusion in the factor investing literature, and proposes solutions with the potential to transform factor investing into a truly scientific discipline. This title is also available as Open Access on Cambridge Core.\u003cbr\u003e\u003cbr\u003e\u003cb\u003eAuthor:\u003c\/b\u003e \u003ca href=\"https:\/\/sureshotbooks-com.myshopify.com\/search?type=product%2Carticle%2Cpage\u0026amp;q=AUTH-16320455\"\u003eMarcos M. López de Prado\u003c\/a\u003e\u003cbr\u003e\u003cb\u003ePublisher:\u003c\/b\u003e Cambridge University Press\u003cbr\u003e\u003cb\u003ePublished:\u003c\/b\u003e 11\/09\/2023\u003cbr\u003e\u003cb\u003ePages:\u003c\/b\u003e 75\u003cbr\u003e\u003cb\u003eBinding Type:\u003c\/b\u003e Paperback\u003cbr\u003e\u003cb\u003eWeight:\u003c\/b\u003e 0.30lbs\u003cbr\u003e\u003cb\u003eSize:\u003c\/b\u003e 9.00h x 6.00w x 0.19d\u003cbr\u003e\u003cb\u003eISBN13:\u003c\/b\u003e 9781009397292\u003cbr\u003e\u003cb\u003eISBN10:\u003c\/b\u003e 100939729X\u003cbr\u003e\u003cb\u003eBISAC Categories:\u003c\/b\u003e\u003cbr\u003e- \u003ca href=\"https:\/\/sureshotbooks-com.myshopify.com\/search?type=product%2Carticle%2Cpage\u0026amp;q=CAT-BUS\"\u003eBusiness \u0026amp; Economics\u003c\/a\u003e | \u003ca href=\"https:\/\/sureshotbooks-com.myshopify.com\/search?type=product%2Carticle%2Cpage\u0026amp;q=BISAC-BUS027000\"\u003eFinance | General\u003c\/a\u003e\u003cbr\u003e- \u003ca href=\"https:\/\/sureshotbooks-com.myshopify.com\/search?type=product%2Carticle%2Cpage\u0026amp;q=CAT-BUS\"\u003eBusiness \u0026amp; Economics\u003c\/a\u003e | \u003ca href=\"https:\/\/sureshotbooks-com.myshopify.com\/search?type=product%2Carticle%2Cpage\u0026amp;q=BISAC-BUS036000\"\u003eInvestments \u0026amp; Securities | General\u003c\/a\u003e\u003cbr\u003e","brand":"Cambridge University Press","offers":[{"title":"Default Title","offer_id":44718313144557,"sku":"9781009397292","price":35.42,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0550\/8097\/6621\/products\/img_9f62b0b9-694f-4cad-9ef7-798e9ff489a3.jpg?v=1704167065","url":"https:\/\/sureshotbooks.com\/es\/products\/causal-factor-investing-can-factor-investing-become-scientific-9781009397292","provider":"SureShot Books Publishing LLC","version":"1.0","type":"link"}