Factor Chasing and the Cross-Country Factor Momentum Anomaly

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Referenz

Bartel, M., & Stöckl, S. (2022). Factor Chasing and the Cross-Country Factor Momentum Anomaly. University of Liechtenstein.

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Abstract

We provide evidence that factor momentum, the tendency of winning factors to outperform losing factors out-of-sample is driven by international crosscountry effects. A strategy that buys a factor in winning countries and sells it in losing countries yields highly significant and economically meaningful returns and alphas. The anomaly we name ”Cross-Country Factor Momentum” subsumes all national factor momentum returns, including US factor momentum.

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Einrichtungen

  • Lehrstuhl für Finance