Common factor


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Common factor

An element of return that influences many assets. According to multiple factor risk models, the factors determine correlations between asset returns. Common factors include size (often measured by market capitalization), valuation measures such as price to book value ratio and dividend yield, industries and risk indices.
References in periodicals archive ?
He said the Malays have religion as one strong common factor which provides them, among other things, the discipline of character and unity of purpose.
The common factor of the two bands will be the acoustic bass, which will tie the two musical ensembles together.
Here X is the observable random vector (i.e., original observed variables); F is the common factor of X, A is the coefficient of F (factor loading matrix), [a.sub.ij] is the correlation coefficient, [[epsilon].sub.i] is the error factor, and B is the special factor of X (usually ignored when analyzing).
These types of general macroeconomic shocks could be captured by the factor model structure; a common factor could represent a macroeconomic trend and the factor loadings represent how the macroeconomic trend affects each county/state, which would vary depending on characteristics of the area such as demographics and industrial composition.
Not only dynamics of stocks but also their relations can be explained by common factors [15].
Common factor F accounts for the correlation among the variables.
Factor rotation was performed to allow the factor load absolute value of the new common factor for each of the four diagnostic results to polarize to 0 or 1 and thus more clearly display the load of all common factor variables, as well as maintaining the variance of all common factors in the corresponding row unchanged.
The addition chains lesson activity led to a chain of enquiries about a pattern of common factors found in the coefficients of a and b in the sequence of cumulative sums compared to the coefficients in the addition chain.
In recent months there have been a number of tragic stories in which the common factor has been a driver who should not have been driving.
Dubai: A Dubai-based doctor has found that traces of marijuana in urine was a common factor among patients who smoke dokha, a form of tobacco.
The author has organized the main body of his text in eleven chapters devoted to the common factor model and exploratory factor analysis, model revision and comparison, CFA with equality constraints, multiple groups, and mean structures, and a variety of other related subjects.