Small-Cap Effect Trading Strategy (Factor, Backtest, Performance, Setup)

Small-Cap Effect Trading Strategy (Factor, Backtest, Performance, Setup)

Of the many classifications a stock can have, one of the most significant is relative to its size. It is well known in the market that small caps tend to perform better than large caps, something called the small-cap effect. However, how significant is the small-cap factor? In this article, we are going to explore…