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S&P 500 Factor Model

A Fama-French five-factor model with LightGBM on the S&P 500, validated walk-forward. Built out of curiosity, not a brief.

Year
2025
Built with
Python, LightGBM, Streamlit
Kind
finance

What it was

A self-initiated question: can factor models actually predict equity returns, or does the literature only work in-sample.

What I built

End-to-end pipeline — S&P 500 ingestion, FF5 regression, LightGBM return prediction, walk-forward out-of-sample validation, Streamlit dashboard.

What it shows

A timing alignment bug had R squared at 0.004. Finding it took it to 0.52. The finding is the work; most people would have shipped the 0.004 and called it a result.

What you can check

  • R squared 0.004 to 0.52 after look-ahead bias correction

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