---
title: Misallocated, Not Mispriced: The Resolution Limit of Local Strength in the Factor Zoo
url: https://www.ml-quant.com/papers/ssrn/7607684/
site: ML-Quant (https://www.ml-quant.com)
updated: 2026-10-16
license: Summaries CC BY 4.0; links go to the original sources
index: https://www.ml-quant.com/llms.txt
identifier: SSRN 7607684
source_url: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=7607684
featured: 2026-10-16
citations: unknown
topic: Asset Pricing & Factors
---


# Misallocated, Not Mispriced: The Resolution Limit of Local Strength in the Factor Zoo

Rejected factors earn 1.30 Sharpe in their home market versus 0.85 overall, yielding 3.8% six-factor alpha per year through venue reallocation constrained by signal-to-noise limits.

- Source: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=7607684
- Identifier: SSRN 7607684
- Released: 2026-10-14
- First featured: Quant Letter No. 135 (2026-10-16): https://www.ml-quant.com/issues/2026-10-16/
- Citations (Semantic Scholar): not tracked
- Published in: not yet
- Topic: Asset Pricing & Factors
- Authors: Huannian Jin

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