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Momentum strategies

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Momentum strategies

Exploring potential sources of the success of momentum strategies

In financial trading, simple momentum strategies such as buying top performing stocks over 6 months and shorting bottom performing stocks over the same time period have exhibited abnormally positive performance when discounting transaction costs. This project explores potential sources of this abnormal performance by duplicating this type of strategy for different stock segments based on market capitalization or stock price, amongst other criteria.

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