Comparative Analysis of Cross Sectional and Time Series Momentum Strategies: An Empirical Study in UK and US Equity Markets

The study compares the profitability of the cross sectional and time series momentum strategies across two developed markets, UK and US equity markets. We find that the cross sectional momentum strategy is not successful in the US market while the time series momentum strategy generate significant p...

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Main Author: Mistry, Prachi Jaswant
Format: Dissertation (University of Nottingham only)
Language:English
Published: 2016
Subjects:
Online Access:https://eprints.nottingham.ac.uk/36843/
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author Mistry, Prachi Jaswant
author_facet Mistry, Prachi Jaswant
author_sort Mistry, Prachi Jaswant
building Nottingham Research Data Repository
collection Online Access
description The study compares the profitability of the cross sectional and time series momentum strategies across two developed markets, UK and US equity markets. We find that the cross sectional momentum strategy is not successful in the US market while the time series momentum strategy generate significant profitability in both the markets. However, the cross sectional momentum returns are found to be superior that that of the time series momentum strategy. These momentum returns are not a compensation for risk but an outcome of the behaviour of investors. An important findings of this paper is that the time series momentum strategy exhibit the ability to sustain positive returns during the “Down Markets” while the crashes magnifies the cross sectional momentum losses.
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language English
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spelling nottingham-368432017-10-19T17:05:31Z https://eprints.nottingham.ac.uk/36843/ Comparative Analysis of Cross Sectional and Time Series Momentum Strategies: An Empirical Study in UK and US Equity Markets Mistry, Prachi Jaswant The study compares the profitability of the cross sectional and time series momentum strategies across two developed markets, UK and US equity markets. We find that the cross sectional momentum strategy is not successful in the US market while the time series momentum strategy generate significant profitability in both the markets. However, the cross sectional momentum returns are found to be superior that that of the time series momentum strategy. These momentum returns are not a compensation for risk but an outcome of the behaviour of investors. An important findings of this paper is that the time series momentum strategy exhibit the ability to sustain positive returns during the “Down Markets” while the crashes magnifies the cross sectional momentum losses. 2016 Dissertation (University of Nottingham only) NonPeerReviewed application/pdf en https://eprints.nottingham.ac.uk/36843/1/Final%20Submission%20.pdf Mistry, Prachi Jaswant (2016) Comparative Analysis of Cross Sectional and Time Series Momentum Strategies: An Empirical Study in UK and US Equity Markets. [Dissertation (University of Nottingham only)] Investment Strategies Cross Sectional Momentum Time Series Momentum
spellingShingle Investment Strategies
Cross Sectional Momentum
Time Series Momentum
Mistry, Prachi Jaswant
Comparative Analysis of Cross Sectional and Time Series Momentum Strategies: An Empirical Study in UK and US Equity Markets
title Comparative Analysis of Cross Sectional and Time Series Momentum Strategies: An Empirical Study in UK and US Equity Markets
title_full Comparative Analysis of Cross Sectional and Time Series Momentum Strategies: An Empirical Study in UK and US Equity Markets
title_fullStr Comparative Analysis of Cross Sectional and Time Series Momentum Strategies: An Empirical Study in UK and US Equity Markets
title_full_unstemmed Comparative Analysis of Cross Sectional and Time Series Momentum Strategies: An Empirical Study in UK and US Equity Markets
title_short Comparative Analysis of Cross Sectional and Time Series Momentum Strategies: An Empirical Study in UK and US Equity Markets
title_sort comparative analysis of cross sectional and time series momentum strategies: an empirical study in uk and us equity markets
topic Investment Strategies
Cross Sectional Momentum
Time Series Momentum
url https://eprints.nottingham.ac.uk/36843/