Mom12m · Momentum · Jegadeesh and Titman (1993)

Momentum (12 month)

Long minus short decile portfolio, value-weighted, market-adjusted. Quarterly, 1927Q1 to 2024Q4.

Expected return · posterior mean, % per year, averaged over the window
Next quarter
2026Q4
22.66%
95% interval 16.81% to 29.33%
Next year
2026Q4–2027Q3
22.55%
95% interval 16.71% to 29.16%
Next five years
2026Q4–2031Q3
22.10%
95% interval 16.24% to 28.69%

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

+8,507,163,259% since 1927Q1 · log scale

Past performance, annualized

Window Mean Vol. Sharpe t
1927Q1–2024Q4 22.95% 28.00% 0.82 8.11
2020Q1–2024Q4 35.88% 38.44% 0.93 2.09
2024Q1–2024Q4 82.03% 29.67% 2.76 2.76

Forecast Sharpe ratio, annualized

Window Mean 95% interval P(neg)
2026Q4 0.81 0.60 – 1.05 <0.01
2026Q4–2027Q3 0.79 0.59 – 1.00 <0.01
2026Q4–2031Q3 0.72 0.51 – 0.95 <0.01
Category
Momentum
Form
Continuous
Data
Price
Sorted on
High minus low
Names per leg
385 long / 382 short median · 69 at the 10th pctile
Original sample
1964–1989