Do you get it director from somewhere? Or do you have to calculate by yourself every time?
Could you give me the formula and or a source, If you’re getting it directly from Google sheets?
Posts in category Value Pickr
Smallcap momentum portfolio (02-12-2023)
Smallcap momentum portfolio (02-12-2023)
@praveen_potnuru I calculate momentum on 6 months and 1 year returns.
Volatility is measured as the Standard Deviation (SD) of the daily returns.
The process I follow is in 6 steps as given below.
a. Calculate the returns on point to point.
b. Calculate the Standard Deviation (SD) of the daily returns.
c. Calculate a factor called momentum ratio which is returns / SD.
d. After that calculate Z-score which is (Momentum ratio – Mean of Momentum ratio of universe)/Standard deviation of Universe.
Complete these steps for 1 year and 6 months look back period.
e. Do the weighting of the Z-score value. I have used equal weightage of 0.5 and 0.5 for 1 year and 6 months respectively. People could choose to give higher weightage to the 6 months Z-score and lower weightage to the 1 year Z-score.
f. I then rank the stocks based on the resultant number.
Smallcap momentum portfolio (02-12-2023)
ok …so i am relatively new at the stock investment…about 2 yr.
I am not sure if the following are coherent points, i would love to hear any comments.
- My PF 85% small cap + 5 % midcap rest large cap.
- Remained fully invested and periodically took loss gracefully,never waited quarter for stock to turn positive, After getting hit up to -30% at PF level.
- I followed names reflected on “stage + elliotwave” investment studies, which was a live thread on VP sometimes back.
- My pf is +42% in about 1.5 year…but i have no names mentioned above.
I would like to subscribe to this view based on my understanding and my pf journey so far.
However the weekly change strategy could be beneficial in protecting return erosion when tide is turning.
Question,
- What is it that may make this smallcap momentum strategy extra ordinary when the market is not rising ?
- Is there a way to add stage + elliotwave studies into this momentum studies, could it be an added strategy for higher returns ?
as per my understanding tax filling is a non-issue to study/execute investment strategy.
Pragnesh’s portfolio (02-12-2023)
Many companies with >10% institutional holding have given multibagger return.So it is not thumb rule.
However, Institutional holding has 2 significance.
If no or less institutional holding,then
1…It is under researched company. So we can buy stock at lower valuation than its intrinsic value.
And second thing
2…If company performs well in future and when mutual funds and other institutes enter in that stock, it can give high stock price appreciation.
Smallcap momentum portfolio (02-12-2023)
Sure, I am still researching about it and will definitely start a new thread with my strategy, returns and experiences here.
Smallcap momentum portfolio (02-12-2023)
Yeah, that will be a pain but hopefully gains are material enough to counter the pains. I think Zerodha has some tie-ups with tax filing agencies to compute your taxable gains.
Smallcap momentum portfolio (02-12-2023)
I guess tax considerations don’t have to affect our investment decisions most times. I personally like to make sure no errors have crept into the computation done by my CA so I personally check what is being filed by the CA. More capital gain entries I have, the more work I have to do at the end of the FY.
Complications arise if you have shares acquired before 31 Jan 2018 but then if the gains are all short term then no issues.
I have more capital gain entries in my account than that of family member’s accounts I help manage. Their returns are much simpler to verify and file. That’s all I meant to convey.
Smallcap momentum portfolio (02-12-2023)
Hey @visuarchie I understand how you measure momentum with average of 3, 6months returns.
Could you explain how you measure volatility?
And is the final selection based on just momentum?
Smallcap momentum portfolio (02-12-2023)
Can anyone suggest where can i download concall pdf copy for small cap companies?
Smallcap momentum portfolio (02-12-2023)
Last time around, I used a CA for the first time to file returns. Once the details of trades are given to them on a spreadsheet, they have some software to update the details line by line.
Most of the gains will be short term. If one has any other losses, they can offset. Otherwise, will have estimate and pay advance tax.