std_turn · Liquidity · Chordia, Subra, Anshuman (2001)

Share turnover volatility

Long minus short decile portfolio, value-weighted, market-adjusted. Quarterly, 1928Q1 to 2024Q4.

Expected return · posterior mean, % per year, averaged over the window
Next quarter
2026Q4
10.33%
95% interval 5.89% to 14.37%
Next year
2026Q4–2027Q3
10.35%
95% interval 5.88% to 14.38%
Next five years
2026Q4–2031Q3
10.40%
95% interval 5.79% to 14.41%

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

+1,178,129% since 1928Q1 · log scale

Past performance, annualized

Window Mean Vol. Sharpe t
1928Q1–2024Q4 11.65% 19.25% 0.61 5.96
2020Q1–2024Q4 2.92% 33.34% 0.09 0.20
2024Q1–2024Q4 1.60% 39.23% 0.04 0.04

Forecast Sharpe ratio, annualized

Window Mean 95% interval P(neg)
2026Q4 0.54 0.31 – 0.75 <0.01
2026Q4–2027Q3 0.53 0.29 – 0.75 <0.01
2026Q4–2031Q3 0.52 0.24 – 0.75 <0.01
Category
Liquidity
Form
Continuous
Data
Trading
Sorted on
Low minus high
Names per leg
47 long / 47 short median · 24 at the 10th pctile
Original sample
1966–1995