1 year momentum is a technical factor. It involves buying stocks with positive momentum over a 1 year time period. Momentum or technical indicators leverage behavioural finance. Investors succumb to ‘herd bias’ which cause stocks to be over or under sold. A positive 1 year momentum could indicate that a stock will continue to rise while a negative momentum could indicate its continued downtrend.
To calculate a stocks 1 year momentum, we divide the current price by the closing price 1 year previous.
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1 Year Momentum
Definition
1 year momentum is a technical factor. It involves buying stocks with positive momentum over a 1 year time period. Momentum or technical indicators leverage behavioural finance. Investors succumb to ‘herd bias’ which cause stocks to be over or under sold. A positive 1 year momentum could indicate that a stock will continue to rise while a negative momentum could indicate its continued downtrend.
To calculate a stocks 1 year momentum, we divide the current price by the closing price 1 year previous.
Strategy
Value
Technical
Quality
Dividend
Health
Persona