The backtest results show that RY has a 75% win rate within 3 days and a 62.5% win rate within 30 days after earnings beats, with a 30-day average return of 1.17%. However, the 10-day win rate drops to 37.5%, indicating some short-term volatility. This suggests that while immediate gains are common, medium-term performance can be mixed but generally positive.

The analysis implies that investors might benefit from holding RY for at least a month post-earnings beat to capture the stronger returns.

Therefore, a strategic holding period of up to 30 days post-earnings beat could enhance investment outcomes in RY.

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The backtest results show that RY consistently delivered positive returns following earnings misses, with a 100% win rate over 3 days and 80% over both 10 and 30 days. The average returns increased from 1.92% at 3 days to 4.46% at 30 days, indicating a strong recovery and upward momentum after the event.

This suggests that despite missing earnings expectations, RY tends to rebound quickly and sustain gains over the medium term. Investors might consider this pattern as an opportunity to buy or hold RY shares after earnings disappointments for potential short- to medium-term gains.

Overall, the data supports a contrarian investment approach post-earnings miss for RY.

The backtest results show that the Banks Industry experienced a negative impact following earnings beats, with a maximum return of only 0.99% occurring 59 days after the event. This suggests that despite positive earnings surprises, the industry does not significantly benefit in terms of stock price appreciation over the medium term. The limited positive return and delayed peak imply cautious investor sentiment or other overriding factors affecting the sector.

Investors should be wary of expecting strong gains from earnings beats in the Banks Industry and consider alternative strategies or sectors for earnings-driven trades.

The backtest results show that when the Banks Industry misses earnings expectations, the immediate impact is a negative return, with a maximum decline of 0.25% on the event day. This indicates a consistent but modest adverse market reaction to earnings misses within this sector. The analysis suggests that the Banks Industry is sensitive to earnings disappointments, though the magnitude of the effect is limited. Investors should be cautious around earnings announcements for banks, as misses tend to trigger slight negative price adjustments, implying a defensive stance may be warranted during such events.

Backtest RY Earning Beats Expectations

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