Post #2726 by lizgdal on the Mechanical Investing board

Investment Strategies / Mechanical Investing

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Some industries only have a few stocks. The average of bpcut 50% and tpcut 50% is close to the median.

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Example that finds median of data: 1,2,3,4,5
number of data points = N = 5

bpcut 50%
0. sort data in ascending order: 1,2,3,4,5
1. bx = (N * Bottom%/100 rounded down) = 2
2. 2nd data point is 2

tpcut 50
0. sort data in descending order: 5,4,3,2,1
1. tx = (N * Top%/100 rounded down) = 2
2. 2nd data point is 4

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The average of tpcut and bpcut is equal to the median when the sample size is even. Some examples with 20241107 data:

Ticker  [IndGroup]  [ROAq1]  tpcut50  bpcut50  [ROAInd]
  NC      5010101     -7%      11%      -1%       5%
 HNRG     5010101     -1%      11%      -1%       5%
  BTU     5010101     9%       11%      -1%       5%
 ARCH     5010101     11%      11%      -1%       5%
 CEIX     5010101     15%      11%      -1%       5%

Ticker  [IndGroup]  [ROAq1]  tpcut50  bpcut50  [ROAInd]
  VET     5010201     -13%     7%       6%        6%
  MG      5010201     -1%      7%       6%        6%
  E       5010201     3%       7%       6%        6%
 SHEL     5010201     4.7%     7.2%     5.7%     6.5%
  TGS     5010201     5.7%     7.2%     5.7%     6.5%
 EQNR     5010201     7.2%     7.2%     5.7%     6.5%
  PBR     5010201     7.4%     7.2%     5.7%     6.5%
  TTE     5010201     8%       7%       6%        6%
  SU      5010201     8%       7%       6%        6%
  CVE     5010201     8%       7%       6%        6%

https://gtr1.net/2013/?~checkG1:lf-1lp-1h1::Assets...

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