This paper estimates the fraction of the variance in aggregate stock returns that can be attributed to various kinds of news. First, we consider macroeconomic ndoi:10.3905/jpm.1989.409212Cutler, David M.Poterba, James M.Summers, Lawrence H.Social Science Electronic Publishing
institutional tradingUsing monthly and multi-day return windows, research shows that credit rating downgrades often reveal new information and lead to significant stock price reactiEven-Tov, OmriOzel, N. BugraSocial Science Electronic Publishing
What Moves Stock Prices? The Role of News, Noise, and Informationvariance decompositionfirm-specific informationmarket-wide informationstock return synchronicityWe develop a return variance decomposition model to separate the role of different types of information and noise in stock price movements. We ...
the language used is different, but probably the most perplexing thing for newcomers is that stocks often seem to move for no reason. The same stock will go up one day and down the next, sometimes in dramatic fashion, and no two moves seem to be about the same thing. ...
Cornell B. What moves stock prices: Another look. The Journal of Portfolio Management. 2013; 39 (3):32-38. doi: 10.3905/jpm.2013.39.3.032Cornell, B. (2013). What Moves Stock Prices: Another Look.Cutler, D. M.; J. M. Poterba; and L. H. Summers "What Moves Stock Prices?" ...
Investors should also note that TROW has a PEG ratio of 2.71 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. By the end of yesterday's trading, the Financial - Investment Management in...
There are advantages to using futures contracts to participate in the commodities market. Analyzing particular investments is simplified because it’s a “pure play” on the underlying commodity.20This means that you can focus solely on the price moves of the commodity itself without dealing with ...
For a put buyer, if the market price of the underlying stock moves in your favor, you can elect to "exercise" the put option or sell the underlying stock at the strike price. American-style options allow the put holder to exercise the option at any point up to the expiration date. Eur...
Under a Creative Commons license Open accessHighlights Abstract What share of asset price movements is driven by news? We build a large, time-stamped event database covering scheduled macro news as well as unscheduled events and find that news account for up to 35% of bond and stock price mo...
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system. ...