Mom6m · Momentum · Jegadeesh and Titman (1993)

Momentum (6 month)

Long minus short decile portfolio, value-weighted, market-adjusted. Quarterly, 1926Q3 to 2024Q4.

Expected return · posterior mean, % per year, averaged over the window
Next quarter
2026Q4
22.92%
95% interval 14.74% to 30.72%
Next year
2026Q4–2027Q3
22.45%
95% interval 14.39% to 30.33%
Next five years
2026Q4–2031Q3
20.68%
95% interval 13.02% to 28.55%

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

+253,336,435% since 1926Q3 · log scale

Past performance, annualized

Window Mean Vol. Sharpe t
1926Q3–2024Q4 18.69% 25.50% 0.73 7.27
2020Q1–2024Q4 47.90% 28.00% 1.71 3.83
2024Q1–2024Q4 57.34% 27.06% 2.12 2.12

Forecast Sharpe ratio, annualized

Window Mean 95% interval P(neg)
2026Q4 0.90 0.58 – 1.22 <0.01
2026Q4–2027Q3 0.82 0.53 – 1.09 <0.01
2026Q4–2031Q3 0.61 0.38 – 0.83 <0.01
Category
Momentum
Form
Continuous
Data
Price
Sorted on
High minus low
Names per leg
395 long / 397 short median · 70 at the 10th pctile
Original sample
1964–1989