How to evaluate factors in your project
Fire Project provides two main ways to evaluate factors: the Industrial Factors Evaluation and the Academic Factors Evaluation. Both methods allow you to assess the performance of your factors using various metrics and visualizations. The main deffierence between the two methods lies in their focus and approach.
Generally speaking, in the financial industry ( particular in Quant Trading), factor evaluation typically prioritizes the predictive power of factors, whereas academia tends to emphasize their explanatory power.