Causality and Factor Investing: A Primer

Written By Chris Smith

ADIA Lab Research Paper Series

Authors: Marcos López de Prado, Vincent Zoonekynd

Date Published: September 2025

Despite factor investing's growing popularity, most strategies falter due to causal blind spots. In this article, we uncover the "factor mirage" and urge a shift from correlation to causation for more robust, trustworthy, and effective investment models.

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Chris Smith
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