Twin Momentum: Combining Price & Fundamental Momentum Together Into One Investing Model
Excess ReturnsDecember 14, 202000:15:57

Twin Momentum: Combining Price & Fundamental Momentum Together Into One Investing Model

The academic research supporting the momentum factor is very strong. But most of that research focuses on the momentum in a stock's price. An interesting research paper written by Dashan Huang looked at the potential to enhance the excess of return of price momentum by also looking at the momentum in a firm's fundamentals. In this episode we discuss this paper and the pros and cons of combining fundamental and price momentum. We also outline the seven variable system the paper uses to calculate fundamental momentum and how it separates out firms who are showing improvements in their businesses.

Validea's Twin Momentum Investor Model & Model Portfolio
https://www.validea.com/dashan-huang
https://www.validea.com/twin-momentum-investor-portfolio/dashan-huang

Justin's Article on Twin Momentum
https://blog.validea.com/twin-momentum-a-combination-of-fundamental-price-momentum/

ABOUT THE PODCAST
Excess Returns is an investing podcast hosted by Jack Forehand (@practicalquant) and Justin Carbonneau (@jjcarbonneau), partners at Validea. Justin and Jack discuss a wide range of investing topics including factor investing, value investing, momentum investing, multi-factor investing, trend following, market valuation and more with the goal of helping those who watch and listen become better long term investors.

SEE LATEST EPISODES
https://www.validea.com/excess-returns-podcast

FIND OUT MORE ABOUT VALIDEA
https://www.validea.com/

FOLLOW OUR BLOG
https://blog.validea.com/

FIND OUT MORE ABOUT VALIDEA CAPITAL
https://www.valideacapital.com/

FOLLOW JACK
Twitter: https://twitter.com/practicalquant
LinkedIn: https://www.linkedin.com/in/jack-forehand-8015094

FOLLOW JUSTIN
Twitter: https://twitter.com/jjcarbonneau
LinkedIn: https://www.linkedin.com/in/jcarbonneau/
Justin Carbonneau, Jack Forehand, Excess Returns Podcast, Fundamental Momentum, Twin Momentum, Dashan Huang, Monentum Investing, Price Momentum,