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Profitability of momentum strategies in the international equity markets

Research output: Journal Publications and ReviewsRGC 21 - Publication in refereed journalpeer-review

Abstract

This paper examines the profitability of momentum strategies implemented on international stock market indices. Our results indicate statistically significant evidence of momentum profits. The momentum profits arise mainly from time-series predictability in stock market indices - very little profit comes from predictability in the currency markets. We also lind higher profits for momentum portfolios implemented on markets with higher volume in the previous period, indicating that return continuation is stronger following an increase in trading volume. This result confirms the informational role of volume and its applicability in technical analysis.
Original languageEnglish
Pages (from-to)153-172
JournalJournal of Financial and Quantitative Analysis
Volume35
Issue number2
DOIs
Publication statusPublished - Jun 2000
Externally publishedYes

Bibliographical note

Publication details (e.g. title, author(s), publication statuses and dates) are captured on an “AS IS” and “AS AVAILABLE” basis at the time of record harvesting from the data source. Suggestions for further amendments or supplementary information can be sent to [email protected].

Funding

Chan and Hameed acknowledge the financial support from the Fund for Wei Lun Fellowships (HKUST) and Academic Research Grant (NUS).

Policy Impact

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