Style investing, momentum, and co-movement
Document Type
Syllabus
Publication Date
4-8-2024
Abstract
Investors and professional money managers typically categorize assets into different styles to facilitate portfolio management and capital allocations. As these market participants move funds among assets of different styles based on their relative performance, correlated trading generates return co-movement and style momentum. This chapter reviews existing theories on style investing and important findings. In particular, it presents new evidence in a large bond market and demonstrates that behavioral finance theory can help explain return co-movement and momentum in the bond market traditionally dominated by institutional and long-term investors who are thought to be less behaviorally biased.
Identifier
85201500365 (Scopus)
ISBN
[9789811269943, 9789811269936]
Publication Title
Handbook Of Investment Analysis, Portfolio Management, And Financial Derivatives (In 4 Volumes)
External Full Text Location
https://doi.org/10.1142/9789811269943_0054
First Page
1735
Last Page
1754
Volume
2-4
Recommended Citation
Wu, Chunchi and Tao, Xinyuan, "Style investing, momentum, and co-movement" (2024). Faculty Publications. 507.
https://digitalcommons.njit.edu/fac_pubs/507