debt reduction - Trading Studio

Growth of C$10,000 in Deleveraging strategy vs S&P/TSX Composite (2000-2025) - Canada

canada stocks

Canada's Deleveraging Result Is a Risk Story: +3.30% vs TSX

D/E reduction + ROE > 8% screen on TSX stocks from 2000-2025. CAGR 8.38% vs TSX Composite 5.08%, +3.30% excess. Down capture 65.7%, Sharpe 0.358 (more than double the TSX). Strong alpha with two-thirds the downside. Full data, SQL screen included.

Growth of ₹10,000 in India Deleveraging strategy vs Sensex (2000-2025, NSE stocks)

india stocks

India Is the Top Performer: Deleveraging Earns +3.85% Annual Excess on NSE

D/E reduction + ROE > 8% screen delivers +3.85% annually vs the Sensex in India. CAGR 14.97%, down capture 77%, total return 3,534%. The signal works here because balance sheet discipline is genuinely scarce in India's growth economy.

Growth of $10,000 invested in the Deleveraging strategy vs S&P 500 from 2000 to 2025, US stocks.

debt reduction

Deleveraging as a US Stock Signal: 7.79% CAGR, Roughly Matching the S&P 500

We backtested D/E reduction with ROE > 8% on US stocks from 2000-2025. 7.79% CAGR vs 8.02% for SPY, a -0.22% annual gap. Clean data gets the signal to parity, but the real edge is abroad: +3.85% in India, +3.30% in Canada vs local benchmarks.