Methodology for Auditing Screening Assumptions
A transparent framework for deconstructing how slight formula deviations alter candidate selections, eliminating subjective filtering bias.
Deconstructing universe shifts through isolated assumptions
Rather than predicting directional price paths, our analytical engine treats parameter modifications as empirical stress tests. We record exactly what enters and leaves a criteria set when a solitary threshold is altered.
Defining Deterministic Inception Pools
Every audit begins with a static parent cohort. We eliminate survivor-biased registries by establishing frozen snapshot intervals across multi-cap indices. Ambiguous listings without standard audited disclosure filings are segregated prior to primary metric evaluation.
- Static baseline timestamp applied across all symbols
- Exclusion of unverified corporate reclassifications
- Elimination of retrospective adjustments to restated periods
Rigor standards governing every audit
Deterministic Datasets
All baseline configurations use immutable snapshots with preserved survivorship records, ensuring that historical criteria changes remain verifiable and fully reproducible.
Single-Variable Isolation
Compound filtering often masks contradictory variables. We exclusively perturb one parameter per iteration to measure direct attribution of result shifts.
Asymmetric Sensitivity
We quantify the exact threshold fragility where minute adjustments in cutoffs trigger disproportionate portfolio composition swings.
Quantitative tracking metrics
Standardized formulas used across our diagnostic reports to assess how sensitive any screening criteria set is to parameter changes.
Universe Turnover Delta
Measures the percentage of entities substituted when modifying a single condition by a fixed increment:
Sector Displacement Ratio
Calculates whether an isolated parameter switch causes systematic sector drift or uniform cross-industry attrition:
Cutoff Elasticity Score
The rate of candidate attrition relative to small 5% adjustments in arbitrary threshold boundaries:
Inspect interactive screening sensitivity studies
Examine real case examinations showing how simple adjustments to accounting denominators reshape candidate pools across major exchanges.