CashProd · Profitability alt · Chandrashekar and Rao (2009)

Cash Productivity

Long minus short decile portfolio, value-weighted, market-adjusted. Quarterly, 1951Q1 to 2024Q4.

Expected return · posterior mean, % per year, averaged over the window
Next quarter
2026Q4
2.26%
95% interval −1.17% to 5.48%
Next year
2026Q4–2027Q3
2.27%
95% interval −1.17% to 5.50%
Next five years
2026Q4–2031Q3
2.32%
95% interval −1.14% to 5.57%

Forecast made 16 Sep 2026, conditioning on this portfolio's OAP returns, which end 2024Q4. The 7 quarters between then and 2026Q4 are unobserved and are integrated out under the model.

Cumulative market-adjusted return

+276% since 1951Q1 · log scale

Past performance, annualized

Window Mean Vol. Sharpe t
1951Q1–2024Q4 2.76% 14.01% 0.20 1.70
2020Q1–2024Q4 −2.14% 19.71% −0.11 −0.24
2024Q1–2024Q4 −8.65% 14.27% −0.61 −0.61

Forecast Sharpe ratio, annualized

Window Mean 95% interval P(neg)
2026Q4 0.16 −0.08 – 0.39 0.09
2026Q4–2027Q3 0.16 −0.08 – 0.39 0.09
2026Q4–2031Q3 0.16 −0.07 – 0.39 0.09
Category
Profitability alt
Form
Continuous
Data
Accounting
Sorted on
Low minus high
Names per leg
382 long / 382 short median · 41 at the 10th pctile
Original sample
1963–2003