Top-rated Canadian equities using a quantitative approach

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Top-rated Canadian equities using a quantitative approach
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We are looking for top-rated Canadian equities using Quantamental factor investing methodology

With the S&P/TSX Composite Index trading within 2.5 per cent of its 52-week high set on April 9, our research team delved into Canadian equities using a Quantitative perspective, which combines quantitative and fundamental analysis. Quantamental investing seeks to identify investment opportunities with a deeper understanding of market dynamics and a focus on generating alpha, or excess returns, for investors.

Finally, we implemented a filter to identify Canadian stocks with a TC Quantamental Rating of 55 or higher with a focus on growth and momentum factors above 50 out of 100. The TC Quantamental Rating ranks stocks on a scale of 0 to 100, with 100 being the most bullish and 0 being the most bearish. TC Quantamental Rating uses a combination of valuation, growth, quality, price momentum and income as key metrics when ranking a company.

Trading Central Strategy Builder provides a backtesting capability to evaluate how well an investing strategy would have worked in the past. Using a five-year historical period with quarterly rebalancing, the screen described had a 13-per-cent annualized total return over five years, compared with 6 per cent for the S&P/TSX 60 Composite Index.

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