What if we were to fundamentally transform the way hedge funds operate? If we could find a way for hedge funds to invest in equities that are less risky, but still provide a higher return, we are helping investors eliminate a part or all of their risk. Our project aims at solving this problem by performing a risk analysis on several equities using various factors used to measure the financial health of an equity. We do so by analyzing the P/E ratio P/E growth ratio, EPS for several past quarters, market capitalization, Sharpe ratio and market sentiment through Twitter. All the ratios are calculated for an adjusted closing price of an equity. We use a Morningstar fundamental data field called normalized_basic_eps since it is a more accurate representation of a company's recent quaterly earnings. The normalized EPS excludes one-time and unusual expenses and acts as a measure for a company's true earnings. By relying on the accuracy of the factors used to measure a company's fundamentals, we perform due diligence for the investor, reducing a part of the risk.
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