Risk-Premium#34tier 1live in production

idio vol puzzle

cadence: Annualdata: mediumlong onlyshort onlylong short

Mechanism

Stocks with high idiosyncratic volatility relative to FF3 earn LOWER returns going forward — the "IVOL puzzle". Counterintuitive (more idio risk should imply higher required return) but robust across 23+

Data dependencies

  • daily_prices

    Adjusted-close OHLCV for every US-listed ticker; primary price feed.

  • fama_french_daily

    Worker data table — see services/worker schema.

Expected edge

Two complementary readings: • SHORT HIGH-IVOL — top-quintile IVOL gives ~−7% annualized excess return after FF3 controls.

Illustrative pattern only

NOT a backtest

Illustrative pattern only — see /app for live backtests and the actual current equity curve.

Explore idio vol puzzle on alphactor.ai

See which tickers this family is currently firing on, with live signals and rankings.

For informational and educational purposes only. Not financial advice. Learn more