Heritability Analogue → Factor Persistence Ratio (FPR)
Factor Persistence Ratio (FPR) quantifies how much of a stock’s return variability is driven by durable fundamentals rather than short-term noise.
Core Formula
FPR = σstructural2 / σtotal2
Interactive FPR Calculator
Interpretation:
High FPR stocks are ideal for long-term, conviction-based investing. Low FPR indicates dominance of market noise.
High FPR stocks are ideal for long-term, conviction-based investing. Low FPR indicates dominance of market noise.
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Stock Market Calculators
