Proceedings of the 3rd International Conference on Economic Development and Business Culture (ICEDBC 2023)

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Comparison of Different Stock Sectors Based on Momentum and Mean-Reversion Strategies

Authors
Chuyi Hu1, *
1Beijing HaiDian Kaiwen Academy, Beijing, 100195, China
*Corresponding author. Email: 20160501023@hd.kaiwenacademy.cn
Corresponding Author
Chuyi Hu
Available Online 26 September 2023.
DOI
10.2991/978-94-6463-246-0_84How to use a DOI?
Keywords
Stock Market; Factors Analysis; Return Rate; Price Cycle
Abstract

People are always interested in better predicting the future stock price to both earn interest and analysis the future economy. To reach this target, people have made many strategies to predict future trends. However, in the stock market, different industrial sectors will have different characteristics and those characteristics determined the performances of different trading strategies. In this paper, the author analyzes some characteristics of different US stock industrial sectors by analyzing the performances of the momentum strategy and mean-revision strategy. After simulating the performance of using the two strategies by using the past 13 years’ real stock price of different stock sectors, the linear regression analysis, factors analysis, and returns comparisons were taken. The result shows basic materials, utilities, and real estate sectors have relatively stable values and stronger tendencies. Their stock price could show more information about their companies. On the other hand, the stock sectors like the technology sector’s stock prices don’t tell a lot of information. Those stock sectors asked for additional information to make a nice investing strategy.

Copyright
© 2024 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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Volume Title
Proceedings of the 3rd International Conference on Economic Development and Business Culture (ICEDBC 2023)
Series
Advances in Economics, Business and Management Research
Publication Date
26 September 2023
ISBN
978-94-6463-246-0
ISSN
2352-5428
DOI
10.2991/978-94-6463-246-0_84How to use a DOI?
Copyright
© 2024 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

risenwbib
TY  - CONF
AU  - Chuyi Hu
PY  - 2023
DA  - 2023/09/26
TI  - Comparison of Different Stock Sectors Based on Momentum and Mean-Reversion Strategies
BT  - Proceedings of the 3rd International Conference on Economic Development and Business Culture (ICEDBC 2023)
PB  - Atlantis Press
SP  - 698
EP  - 708
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-246-0_84
DO  - 10.2991/978-94-6463-246-0_84
ID  - Hu2023
ER  -