Investigate possibility of applying Contrarian strategy for short-term investment

Subject Areas : Financial Knowledge of Securities Analysis

زهرا جعفرزاده ¹ , مجید زنجیردار ² , مهدی کریمی تبریزی ³

1 - ندارد
2 - مسئول مکاتبات
3 - ندارد

Received: 2013-08-16 Accepted : 2014-04-09 Published : 2014-10-12

Keywords: Momentum Strategy, capital market,

Abstract :

Two investment , s guideline in stock markets by investment ,s managers utilized areMomentum Strategy and Contrarian strategy. Contrarian strategy recommend that theshares which were good function in past ,should be selling and the shares which werepoor function in past ,should be buying .this research designed based on this believewhich capital market in proportion to new information shows excessive reaction and todetermine prices of succeed shares more than real prices , and to determine prices ofsucceed shares less than real prices .therefore in future time which market will find out tothe mistake in pricing return output have existence about this share .this researchInvestigate possibility of increase of output of short-term investment and earn unusualoutput by utilization Contrarian strategy in Iran ,s capital market.Community statistics of this research formation five industry of stock market whichduring the years (1385-1389) have been studied. Analysis data with t-students Test doneit . the result of this research shows which average of loser Portfolio in one year cycle orless ,no statistically significant difference and more than Winner Portfolio . In factpossibility of increase of output of short-term investment in Iran , s capital market capitalby applying of Contrarian strategy does not exist.