Welcome to our investment strategy showcase! Explore static examples of our Fractional Momentum Strategy, demonstrating its performance across various markets and datasets, from major indices to international locales. These insights will help you understand how our strategy might align with your investment goals. Whether you're a seasoned investor or new to the market, our examples offer a clear demonstration of the strategy's potential in diverse market conditions. Dive in and see how it could enhance your investment decisions.
The S&P 100 index includes 100 major, blue chip companies in the United States. It is representative of large-cap market performance, featuring companies with stable earnings and strong histories. Our Fractional Momentum Strategy leverages these characteristics by identifying momentum within these giants, optimizing for the dynamics of well-established firms. By applying our strategy to the SP100, investors can see how it performs in a relatively stable and predictable segment of the market, often preferred by conservative investors seeking reliability and lower volatility.
The S&P 500 index includes 500 of the most prominent and widely traded companies in the United States. It serves as a broad measure of large-cap market performance, encompassing a diverse range of industries and sectors. Representing approximately 80% of the available market capitalization, the S&P 500 includes companies from technology, healthcare, financial services, consumer goods, and many other sectors, making it a comprehensive indicator of the overall health of the U.S. economy. Our Fractional Momentum Strategy takes advantage of this diversity by identifying momentum trends across a wide spectrum of companies, optimizing for the varying dynamics present within the index. By applying our strategy to the S&P 500, investors can observe its performance in a comprehensive and diverse market segment. The S&P 500 is often favored by investors seeking a blend of stability and growth, as it includes both well-established blue-chip companies and emerging leaders in various industries. This index provides a reliable benchmark for understanding market trends and the potential impact of macroeconomic factors, appealing to those seeking a balanced approach that captures both stability and growth opportunities.
The NASDAQ 100 tracks 100 of the largest non-financial companies listed on the NASDAQ stock market and is heavily skewed towards technology and biotech. Given the growth-oriented and often volatile nature of tech stocks, our strategy aims to capitalize on the rapid price movements and trends that define this sector. By focusing on the fractional momentum, our strategy is designed to pinpoint and exploit short-term gains while managing the inherent risks of the tech industry. This is crucial for investors looking to maximize returns in a sector driven by innovation and rapid change.
Unlike the large-cap focus of the SP100 and the tech-heavy NASDAQ 100, the Russell 2000 index offers insights into 2,000 small-cap American companies. These companies are typically more responsive to domestic economic shifts, making them an interesting segment for momentum strategies. Our approach here is tailored to capture the agility of small caps, identifying quick wins in the market’s underexplored corners. Investors interested in the Russell 2000 will find that our strategy helps uncover potential high-growth stocks before they mainstream, potentially leading to substantial returns.
Harnessing Market Dynamics with Fractional Momentum
Our study takes the research global, proving that fractional momentum is not just a phenomenon in the U.S. stock market—it's a powerful strategy that works worldwide. In Brazil, we narrow our focus to the top 95% of the market by capitalization, reflecting a more selective approach due to the dynamic nature of emerging markets. We analyze 38 stocks, using data adjusted for dividends and stock splits, sourced from trusted providers like Compustat from September 1990 to March 2022. Like our U.S. studies, we use a method that involves rebalancing investments weekly to determine which stocks are gaining momentum and which aren't. We use a specific setup where only a fraction of stocks, specifically 20%, are chosen for each portfolio based on their potential to grow.
Applying Fractional Momentum in France
In France, we analyze 73 stocks that capture the top 90% of the market, using data that spans from September 1990 to March 2022. Our approach, consistent with our global strategy, involves weekly rebalancing and focuses on stocks adjusted for dividends and stock splits. This methodology allows us to explore the effectiveness of fractional momentum in one of Europe's largest economies.
Exploring Economic Strength with Fractional Momentum in Germany
Germany's position as an industrial powerhouse makes it an ideal candidate for our fractional momentum strategy. We focus on the top 90% of the market by capitalization, analyzing trends in 300 stocks from September 1990 to March 2022. Our data, sourced from Compustat and adjusted for dividends and stock splits, supports a strategy of weekly rebalancing to identify the most promising investment opportunities in the German market.
Fractional Momentum in Hong Kong's Vibrant Market
Our research takes us to Hong Kong, where we apply the fractional momentum strategy to a select group of stocks that represent the top 90% of the market. Using Compustat data, adjusted for dividends and stock splits, our sample includes significant players from September 1990 to March 2022. The strategy involves weekly rebalancing, emphasizing the growth potential within Hong Kong's unique market dynamics.
Fractional Momentum in Japan: A Robust Strategy
Japan's robust industrial sector provides a fertile ground for applying fractional momentum strategies. Our analysis includes 615 Japanese stocks, representing the top 90% of the market, ensuring a comprehensive overview of momentum trends. Data sourced from Compustat includes price adjustments for dividends and stock splits, spanning from September 1990 to March 2022. We employ weekly rebalancing to highlight the stocks with the most promising growth trajectories.
Exploring Fractional Momentum in the UK Market
In the UK, we demonstrate the effectiveness of fractional momentum in diverse environments by focusing on major players within the stock market—specifically, the top 90% by market capitalization. Our data, which tracks prices adjusted for dividends and stock splits, ensures accuracy and relevance. Our analysis covers the period from September 1990 to March 2022, examining a selection of 250 key stocks to assess momentum strategies through weekly rebalancing.