← Research logMomentum & Time-Series
PARTIAL · premium tilt
#

Assets with more negative realized skew earn higher subsequent returns (compensation for crash risk); a skew-sorted tilt harvests it.

$$ \text{RSkew}_i = \frac{\tfrac{1}{n}\sum (r_{i,t}-\bar r_i)^3}{\hat\sigma_i^3} $$

Rank alts by trailing realized skew, long most-negative-skew / short most-positive, monthly rebalance, costs applied.

Skew premium (gross)positive
Net of feesthin positive
Crash co-movementthe premium is the risk
PARTIAL EDGE
A real but risk-based tilt: negative-skew names pay a premium precisely because they crash together. It is compensation for tail risk, not free alpha — kept as a small factor tilt with tail awareness, never levered.
A return premium sorted on crash risk is rent for owning crash risk. It shows up as alpha until the crash, when it pays the bill all at once.

We publish the failures too.

This is one of 100+ documented hypotheses. Browse the full lab notebook, or see the strategies that survived into production.