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Investing Research Articles

3574 Research Articles

Seeking Confirming Opinions Rather Than Information?

…experimental evidence indicates that participation in stock message boards/forums increases a typical investor’s propensity to trade and decreases actual investment performance. Investors may want to factor this effect into their information search and processing practices.

Success Factors for High-frequency Pairs Trading

…evidence indicates that success of high-frequency trading of paired stocks likely depends critically on minimizing trading friction, balancing trading friction and trigger sensitivity and reacting quickly to triggers, and perhaps on being especially alert during the first hour of trading.

Rogue Waves and Hedge Fund Returns

…evidence indicates that hedge funds with low net market exposure may earn returns largely by assuming that correlations between assets and asset classes will behave predictably, and rogue correlation spikes may swamp these funds with extremely large drawdowns.

Exploit Media Bias in Hedge Fund Coverage?

…evidence indicates that hedge fund investors may be able to gain an edge by limiting consideration to funds with recent corporate releases but no other recent media coverage.

Why Don’t We All Just Do What Warren Buffett Does?

…evidence indicates that investors can capture a large portion of Berkshire Hathaway’s long-term outperformance by mimicking holdings described in the company’s SEC disclosures, because many other large traders do not.

Sentiment from Google Insights and Return Continuation

…evidence from limited tests suggests that online search activity may help predict which recent winning and losing stocks will continue winning and losing.

Stock Synchronicity and Future Returns

…investors may be able to identify stocks inclined to outperform and underperform over the long term based on the degree to which their short-term returns track market and industry returns.

A Few Notes on Capital Rising

In their June 2010 book Capital Rising: How Capital Flows Are change Business Systems All Over the World, authors Peter Cohan and Srinivasa Rangan mine lessons from 47 case studies to “describe the phenomenon of capital flows, present new ways to think about what causes them to rise and fall, and describe ways that our… Keep Reading

Research on the Value of Insider Trading Data

A reader commented and asked: “I searched your site for ‘insider’ and found very little investigation of a relationship between insider buys and stock price movement. Is this an area you could look at, classify and present to readers?”

Tools to Tackle Non-normality?

A reader commented and asked: “I frequently read that stock prices are not normally distributed, and that by assuming they are, an investor will tend to underestimate market risk. One paper I read says their distribution is leptokurtic, a distribution that has a more acute peak around the mean (that is, a higher probability than… Keep Reading