An Examination of Momentum Strategies in Commodity Futures Markets

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CFA Digest
August 2007 | Vol. 37 | No. 3 | 3 pages
Source: CFA Institute
Qian Shen Andrew C. Szakmary Subhash C. Sharma
Deborah Winch, CFA (Reviewer)

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Abstract

In recent years, many studies have shown momentum strategies to be surprisingly profitable for horizons of 1–12 months. The consensus in the literature is that the profits are greater than what the risk factors would suggest. The authors study momentum strategies in commodities futures markets and find that momentum strategies generate highly significant positive returns for short and intermediate time periods and that the returns are similar in magnitude to those reported for stocks.

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Topics
Derivatives
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Portfolio Management
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