Comment on Momentum Portfolios

Karthik Rangappa commented on 09 May 2019, 11:15 AM

I’m talking a simple mean reversion strategy, Kulbir. All you have to do is figure out the current market price of the stock and estimate how many SD away it is wrt to the mean. The general perception is that stocks which have deviated away from the mean tend to revert to mean. You may want to test this hypothesis across different stocks and indices.

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