Understanding Quantitative Equity Strategies

In the realm of equity portfolio management, quantitative strategies are utilized to enhance investment returns by exploiting market inefficiencies. A quant strategy often employs mathematical models and statistical techniques to identify patterns in stock price movements and make predictions. In this context, investors often use various factors such as size, value, momentum, and volatility to select their investments.

Which of the following options best describes a characteristic of a quantitative equity investment strategy?