Third-Party Research & Methodology Only

This section shares summaries of third-party academic research and descriptions of quantitative models. The content represents the findings of the original researchers, not the opinions or recommendations of Foxholm Financial. Foxholm Financial does not publish hypothetical or backtested performance metrics on its quantitative research pages. All content is restricted to methodology, signal construction, factor logic, and risk architecture. SEC rules require that investment advisers not present misleading performance data, and our methodology-only approach reflects that standard and the firm's fiduciary obligations.

Models

Quantitative Model Library

Each model page explains a specific method: the idea behind it, how it works, what it assumes, and where it falls short. Models are organized by what they do: finding trading opportunities, building portfolios, measuring risk, and meeting regulatory requirements.

Investment & Trading Models

Trading Strategies & Signals

Methods for finding opportunities in market data. These models take raw price, volume, and company data and turn them into ranked lists of what to buy and sell.

Momentum Scoring
Uses price trends, trading volume, and company data to rank stocks by the strength of their recent performance.
Mean Reversion
Statistical methods for spotting when prices have moved too far in one direction and may be due to snap back.
ML Stock Prediction
Machine learning approaches to equity price prediction, including feature engineering, model selection, and overfitting controls.
Quantitative Stock Screener
A step-by-step filtering process that narrows thousands of stocks down to a short list using financial health, quality, and trend criteria.
Sector Rotation
Systematic frameworks for evaluating relative sector attractiveness using economic cycle indicators and relative strength.
Pairs Trading
A strategy that finds two related securities whose prices move together, then profits when their prices temporarily diverge.
Trend Following
Systematic trend identification using moving average crossovers, breakout detection, and position sizing rules.
Statistical Arbitrage
Strategies that profit from temporary price gaps between groups of related securities by betting prices will return to normal.
Relative Strength
Ranks investments by how well they have performed compared to each other over recent time periods.
Sentiment Analysis
Natural language processing (NLP) methods for extracting trading signals from news, filings, and social media.

Portfolio Construction

Methods for deciding how to divide your money across investments. These models determine how much to put in each holding based on expected returns, risk limits, or specific characteristics you want to target.

Factor Investing
A portfolio strategy that targets well-documented drivers of long-term returns: cheapness (value), company quality, price trends (momentum), and stability.
Risk Parity
An approach that sizes each investment so that every holding contributes the same amount of risk to the overall portfolio.
Black-Litterman
A portfolio method that blends what the market implies about expected returns with the investor's own outlook and opinions.
Mean-Variance Optimization
The classic method for finding portfolios that offer the highest expected return for a given level of risk.
Smart Beta
Factor-based portfolio construction that systematically weights securities by value, quality, momentum, or low volatility rather than market capitalization.
Tactical Asset Allocation
Dynamic allocation strategies that shift portfolio weights based on valuation signals, economic indicators, or regime detection.

Risk Models & Analytics

Tools for measuring, simulating, and stress-testing portfolio risk. These models estimate how much a portfolio could lose under different conditions, from normal markets to worst-case scenarios.

Value at Risk (VaR)
Estimates the worst-case portfolio loss you might expect over a given time period, using several different calculation methods.
Monte Carlo Simulation
Runs thousands of random simulations to show the range of possible outcomes for a portfolio or retirement plan.
GARCH Volatility
Models how market volatility (the size of price swings) changes over time, capturing the pattern where large moves tend to follow large moves.
Backtesting Framework
Tests whether an investment strategy would have worked on historical data it has never seen, with safeguards against false positives.
Drawdown Risk
Measures the largest peak-to-bottom drops in portfolio value, how long recovery takes, and related risk metrics.
Portfolio Stress Testing
Tests how a portfolio would hold up under extreme conditions like past market crashes and hypothetical worst-case scenarios.
RegTech & Compliance Models

Regulatory Technology

Technology for meeting regulatory requirements. These models serve compliance officers, risk managers, and FinTech teams building systems for monitoring transactions and calculating required capital.

AML Transaction Monitoring
Methods for detecting suspicious financial activity, scoring alerts by risk level, and reporting to regulators.
Customer Risk Scoring
Frameworks for rating customer risk during onboarding, ongoing monitoring, and deciding when to investigate further.
Regulatory Capital
How banks calculate the capital they are required to hold, including risk-weighted assets and the formulas behind regulatory minimums.
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Disclaimer

This content is for educational and informational purposes only and does not constitute an offer to sell or a solicitation of an offer to buy any securities. Nothing herein constitutes investment advice or recommendations tailored to your individual situation. All investments involve risk, including the potential loss of principal. Past performance is no guarantee of future results. Information presented is believed to be factual and up-to-date, but Foxholm Financial does not guarantee its accuracy and it should not be regarded as a complete analysis of the subjects discussed. Before making investment decisions, consult with a qualified financial advisor who can evaluate your specific circumstances.