Behavior of Momentum in the Foreign Exchange Market: Evidence from Portfolio Approach

Phuvadon Wuthisatian, Hasib Ahmed, Atsuyuki Naka

Research output: Contribution to conferencePaper

Abstract

This paper investigates the momentum strategy of currency using 66 cross-currency exchange rates from spanning period of December 1984 to December 2015. We follow the approach from Daniel and Moskowitz (2016) paper to investigate the source of the momentum returns. Our finding, however, shows that the (i) unlike stock market, out sample does not behave as it is predicted by Daniel and Moskowitz (2016) result, (ii) the loser portfolio, however, acts the same way as it does in stock market, and (iii) the source of returns from WML is mainly from loser portfolio rather winner portfolio.

Original languageAmerican English
StatePublished - Oct 2 2017
Externally publishedYes
EventAcademy of Financial Services (AFS) Annual Conference - Nashville, United States
Duration: Sep 30 2017Oct 2 2017

Conference

ConferenceAcademy of Financial Services (AFS) Annual Conference
Abbreviated titleAFS
Country/TerritoryUnited States
CityNashville
Period9/30/1710/2/17

Cite this