Write a statistical analysis (both linear and non-linear) of the predictive power of the quality factor and its three components (Profitability, Growth and Safety).

The “quality” factor has become one of the strongest and most scalable investment strategies in equity markets. The CIO (Chief Investment Officer) of your company is exploring the possibility to launch a product in this space and asks the quant research team to prepare a short analysis of this investment factor. Your report will have the following components: Presentation of the fundamental intuition behind this strategy. Statistical analysis (both linear and non-linear) of the predictive power of the quality factor and its three components (Profitability, Growth and Safety). Detailed backtesting of a long-only strategy based on the quality factor and on its three components separately. Detailed backtesting of a long-short strategy based on the quality factor and on its three components separately. There is no formal length requirement for this assignment.