Factor tables are essential tools in evaluating stock performance, providing a structured way to analyze various attributes or "factors" that can influence a stock's behavior. These tables typically include factors like value, momentum, quality, size, growth, and low volatility, among others. By analyzing these factors, traders and investors can gain insights into a stock's potential future performance.

Each factor in the table represents a different aspect of a stock's characteristics. For instance, the value factor might consider price-to-earnings or price-to-book ratios to identify undervalued stocks. The momentum factor looks at the stock's recent performance trends, while the quality factor examines aspects like earnings stability and financial health.

Traders use factor tables to rank and score stocks based on these factors, creating a comprehensive picture of each stock's strengths and weaknesses. By aggregating these scores, they can identify stocks that exhibit favorable attributes across multiple factors, making them potential candidates for investment.

Factor tables also help in constructing diversified portfolios. By understanding which factors are driving performance, traders can ensure they have exposure to a balanced mix of factors, reducing risk and enhancing returns. Additionally, factor tables allow for backtesting, enabling traders to evaluate how well their strategies based on these factors would have performed historically, thereby refining their investment approaches.