What is short-term reversal?Short-term Reversal

Stocks that rose most over about the past month tend to slip the next month and the biggest losers tend to bounce, often blamed on overreaction and liquidity shocks.

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Quant Basics
Momentum 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

mean reversion
momentum factor
winners minus losers
momentum crash

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