What is momentum factor?Momentum
The tendency of stocks that have done well recently to keep outperforming in the near term.
Learn “momentum factor” in an animated lesson
- Quant BasicsFactors: Scoring Stocks
Do cheap stocks, strong-trending stocks and high-quality stocks do better on average? Sort stocks into five groups by a factor and the answer is plain to see.
- Quant BasicsMomentum and Reversal
Stocks that did well over the past few months tend to stay a bit stronger; but those that just shot up last month often give it back the next. The lookback period decides whether you're buying momentum or reversal.
Related terms
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Go to “Factors: Scoring Stocks”