Surprise in Short Interest as Stock Return Predictor
December 18, 2020 - Short Selling
Do surprising fluctuations in short interest ratios of stocks indicate new information from short sellers that predicts returns of these stocks? In their November 2020 paper entitled “Surprise in Short Interest”, Matthias Hanauer, Pavel Lesnevski and Esad Smajlbegovic examine standardized unexpected short interest ratio as a stock return predictor. They define this variable as current… Keep Reading