The backtest results indicate that YRD delivered an average 17.50% return with a 63.64% win rate over 30 days following an earnings beat. In contrast, short-term performance was weak, as 3-day and 10-day returns were negative and win rates low.

This pattern suggests YRD often lags immediately after an earnings surprise but tends to recover meaningfully over the following month, reaching its peak at day 32.

For investors, the findings highlight the potential advantage of holding YRD for a month post-earnings beat instead of seeking immediate gains.

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The backtest shows that YRD experienced negative returns following an earnings miss on 2022-09-21, with a 0% win rate and a 30-day return of -24.77%.

This result indicates a strong adverse market reaction to the earnings miss, with persistent underperformance over the following month.

Investors should be cautious about holding YRD after earnings disappointments, as the data suggest a high risk of significant losses in the short and medium term.

The backtest indicates that when the Consumer Finance Industry beats expectations, there is no discernible impact on returns, with a maximum return of -0.46% occurring on the 10th day after the event.

This result suggests that positive surprises in the industry’s earnings do not translate into significant stock price movements, indicating muted investor response in the short term.

Investors should moderate expectations for abnormal returns following earnings beats in the Consumer Finance sector, as historical data show limited price reaction.

The backtest results reveal that when the Consumer Finance Industry experiences earnings that miss expectations, there is no statistically significant impact observed on the industry’s returns.

This lack of impact is supported by the modest maximum return of just 0.99% within four days of the event, indicating a muted market response to such negative surprises.

For investors, this suggests that earnings misses in the Consumer Finance sector may not present meaningful short-term trading opportunities, and event-driven strategies may be less effective here.

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