Core Viewpoint - The article discusses the decline of the "dividend low volatility" investment style in the market and explores whether it has become ineffective, while also investigating the potential for creating a new "low volatility miracle" using the Alice AI index strategy platform [2]. Group 1: Strategy Development and Backtesting - The company utilized the Alice AI platform to generate a strategy based on dividend yield and low volatility indicators, selecting the top 100 stocks from the CSI 800 index with quarterly rebalancing [5]. - Backtesting results showed that the CSI 800 Enhanced strategy had an annualized volatility of 13.27% and a maximum drawdown of 8.90% over the past year, indicating a steady upward trend in excess returns from 2021 to 2024, but a downturn began in August 2024 [7]. Group 2: Performance Analysis - A scenario analysis revealed that the "dividend low volatility" strategy performed well in value style periods but lagged in growth style periods, particularly in 2023 when growth dominated the market [10]. - The analysis indicated that from November 2020 to August 2021, the growth style had an excess return of -8.37%, while the value style from August 2021 to April 2023 had an excess return of 32.77% [10]. Group 3: Strategy Evolution - The company sought to evolve the strategy by incorporating growth factors such as TTM revenue growth rate and TTM net profit growth rate, resulting in improved performance and alignment with the current market environment [11][13]. - The revised "dividend low volatility + growth" strategy showed significant improvement in total returns starting in 2025, with the excess return curve rising again [21]. Group 4: AI Integration and Future Outlook - The article emphasizes the efficiency of the Alice AI platform in facilitating the entire strategy research process, from generation to backtesting and optimization, without the need for complex coding [23]. - The company suggests that the decline of the dividend low volatility style may simply be a phase of style rotation, and with Alice, there is an opportunity to actively reconstruct strategies and quickly validate them [26].