Momentum and Low Volatility

Momentum buys recent winners, and low volatility favors calm stocks. Here is why each has worked over long periods, and how both fell short in our March to September 2026 data.

Momentum

Momentum buys stocks with the strongest returns over roughly the past six to 12 months, often skipping the most recent month, and sells or avoids the weakest. It has been one of the most persistent factors in research across countries, but it can suffer sharp crashes when beaten-down stocks rebound suddenly.

Momentum ranks stocks by their relative strength.

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