Momentum Factor

Momentum Factor

"Momentum solves 80% of your problems."

- John C. Maxwell

"Perhaps the best-known investment paradigm is buy low, sell high. I believe that more money can be made by buying high and selling at even higher prices."

- Richard Driehaus

Why are runners unable to stop right after crossing the finish line? The force that is applied to move them towards the finish line builds momentum and keeps them moving in the same direction fo

How is ‘Momentum’ Measured?

There is an abundance of methodologies implemented for momentum strategies. The table below provides an overview of common momentum factor indices among index providers and professionals.

Does the Momentum Factor work?

The momentum factor has empirically generated positive excess returns, as evidenced by several seminal works including the ones by Jegadeesh and Titman (Jegadeesh & Titman, 1993) and Carhart

Performance of Momentum Factor Across Markets: USA, Europe, and India

The performance of the momentum factor across the USA, Europe, and India highlights its effectiveness in capturing trends and outperforming the broader market over time. The graphs highlight tha

NJ’s Momentum Factor - NJ Momentum+ Model

One of the concerns when using momentum is the propensity of a moving stock to “recoil” sharply when it reaches a turning point. The most popular way of overcoming this is to use a l

Performance of Select Momentum Parameters

A.Momentum Momentum refers to the absolute price movement of an asset over a specific time period. It is typically measured as the difference or percentage change between the asset's price at

"Momentum solves 80% of your problems."

"Perhaps the best-known investment paradigm is buy low, sell high. I believe that more money can be made by buying high and selling at even higher prices."

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