Got it. Two factors were considered.
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Volatility of individual stock gets captured in the momentum ratio. How this compares with the universe gets captured in the Z score. If there have been particularly volatile stocks that have given good returns also, then they could be caught by this.
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I have tried to use both 6m and 12m look periods to arrive at final list. This is a way to use both time periods. I have used 50% weightage for both time periods. One could use different weightage, like 70% for near term performance (6m) and 30% for long term performance (12m) or any other ratio. This calculation will lend us to do this type of analysis.
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