Skip to content

Quantitative Signals & Scoring

Backtest Universe Alignment

The process of ensuring that the security universe used in historical backtesting matches the investment universe available at each historical date, preventing look-ahead bias and survivorship bias in signal performance evaluation.

Sources: MSCI Barra Research, Survivorship Bias in Factor Backtests (2018) · SEC Division of Trading and Markets, Microstructure and Data Integrity Guidelines (2021)