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Contrarian Trading Strategies

Research output: Chapter in Book/Report/Conference proceedingChapterpeer-review

Abstract

Contrarian trading is a form of active portfolio management that seeks to profit from collective limitations in human behavior that lead to predictable patterns in investment returns. Relevant to these patterns, contrarian investors anticipate performance reversals, thereby taking long positions in past losers and short positions in past winners to exploit them. The returns of contrarian traders seem to be abnormal, although there have been evidence to the contrary, yet not universal.

Original languageEnglish
Title of host publicationWiley Encyclopedia of Management
Publisherwiley
Pages1-7
Number of pages7
ISBN (Electronic)9781118785317
ISBN (Print)9781119972518
DOIs
StatePublished - 1 Jan 2015
Externally publishedYes

Bibliographical note

Publisher Copyright:
© 2014 John Wiley & Sons, Ltd. All rights reserved.

Keywords

  • active portfolio management
  • behavioral investments
  • contrarian investment strategies
  • overreaction hypothesis
  • return reversals

ASJC Scopus subject areas

  • General Economics, Econometrics and Finance
  • General Business, Management and Accounting

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