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Investor sentiment and volatility timing: evidence from European markets

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Detalhes bibliográficos
Resumo:The purpose of this study is to analyze the performance and dynamics of several investment strategies. The individual part focuses on exploring the profitability of a cross-sectional long only trading strategy that explores return differences between sentiment-prone and sentiment insensitive stocks, using the VSTOXX as a sentiment indicator for the European stock market. The strategy consists of holding sentiment-prone stocks when the sentiment is good and sentiment insensitive stocks when sentiment is bad. In the group part, several strategies were combined to form three portfolios: Equal-Weighted, Tangency and Global Minimum Variance. The group report is presented first, followed by the individual contribution.
Autores principais:Centeno, João Pedro Morgado
Assunto:Financial markets Quantitative investment strategy Investor sentiment Volatility timing European stock market
Ano:2024
País:Portugal
Tipo de documento:dissertação de mestrado
Tipo de acesso:acesso aberto
Instituição associada:Universidade Nova de Lisboa
Idioma:inglês
Origem:Repositório Institucional da UNL
Descrição
Resumo:The purpose of this study is to analyze the performance and dynamics of several investment strategies. The individual part focuses on exploring the profitability of a cross-sectional long only trading strategy that explores return differences between sentiment-prone and sentiment insensitive stocks, using the VSTOXX as a sentiment indicator for the European stock market. The strategy consists of holding sentiment-prone stocks when the sentiment is good and sentiment insensitive stocks when sentiment is bad. In the group part, several strategies were combined to form three portfolios: Equal-Weighted, Tangency and Global Minimum Variance. The group report is presented first, followed by the individual contribution.