ChangeInRecommendation · Recommendation · Jegadeesh et al. (2004)

Change in recommendation

Long minus short decile portfolio, value-weighted, market-adjusted. Quarterly, 1994Q1 to 2024Q4.

Expected return · posterior mean, % per year, averaged over the window
Next quarter
2026Q4
1.34%
95% interval −1.84% to 4.39%
Next year
2026Q4–2027Q3
1.31%
95% interval −1.89% to 4.41%
Next five years
2026Q4–2031Q3
1.21%
95% interval −2.13% to 4.52%

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

+29% since 1994Q1 · log scale

Past performance, annualized

Window Mean Vol. Sharpe t
1994Q1–2024Q4 1.28% 9.72% 0.13 0.74
2020Q1–2024Q4 6.85% 11.84% 0.58 1.29
2024Q1–2024Q4 5.42% 16.57% 0.33 0.33

Forecast Sharpe ratio, annualized

Window Mean 95% interval P(neg)
2026Q4 0.14 −0.19 – 0.45 0.20
2026Q4–2027Q3 0.13 −0.19 – 0.43 0.21
2026Q4–2031Q3 0.11 −0.19 – 0.40 0.23
Category
Recommendation
Form
Continuous
Data
Analyst
Sorted on
High minus low
Names per leg
181 long / 160 short median · 93.2 at the 10th pctile
Original sample
1985–1998