---
title: Power Sorting
url: https://www.ml-quant.com/papers/ssrn/4552208/
site: ML-Quant (https://www.ml-quant.com)
updated: 2026-09-26
license: Summaries CC BY 4.0; links go to the original sources
index: https://www.ml-quant.com/llms.txt
identifier: SSRN 4552208
source_url: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4552208
featured: 2023-08-30
citations: 2
topic: Asset Pricing & Factors
---


# Power Sorting

The article suggests a new method for creating characteristic-based equity factors called power sorting, showing its superior performance and applicability to multifactor strategies.

- Source: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4552208
- Identifier: SSRN 4552208
- Released: 2023-08-25
- First featured: Quant Letter No. 14 (2023-08-30): https://www.ml-quant.com/issues/2023-08-30/
- Citations (Semantic Scholar): 2
- Published in: not yet
- Topic: Asset Pricing & Factors

## Related

- [Alpha Now, Taxes Later: Tax-Efficient Long-Only Factor Investing](https://www.ml-quant.com/papers/ssrn/4538712/): Despite high turnover, factor investing can yield significant pre-tax and post-tax alphas, especially with value, quality, and safety buy-and-hold portfolios, making it a viable option for tax-aware investors.
- [Dynamic Time Warping for Lead-Lag Relationships in Lagged Multi-Factor Models](https://www.ml-quant.com/papers/arxiv/2309.08800/): A new technique using dynamic time warping has been created to identify lead-lag relationships in multivariate time series systems, demonstrated in financial markets.
- [A comparative study of factor models for different periods of the electricity spot price market](https://www.ml-quant.com/papers/arxiv/2306.07731/): A 4-factor model is better at predicting electricity spot prices in non-crisis times, but not during crises.
- [HireVAE: An Online and Adaptive Factor Model Based on Hierarchical and Regime-Switch VAE](https://www.ml-quant.com/papers/arxiv/2306.02848/): HireVAE is a deep learning-based model that outperforms previous methods in terms of active returns in stock market benchmarks.
- [Robust Detection of Lead-Lag Relationships in Lagged Multi-Factor Models](https://www.ml-quant.com/papers/arxiv/2305.06704/): A methodology for detecting lead-lag relationships in time series systems can be used for control, forecasting, or clustering, and is useful for financial markets or environmental data sets.
- [An Examination of Number of Holdings and Universe Size in Momentum Strategies: Evidence from India](https://www.ml-quant.com/papers/ssrn/4453680/): An analysis of momentum strategies in India finds that concentrated portfolios offer better factor exposure but carry higher idiosyncratic risk and do not outperform on a risk-adjusted basis.