High-Risk stocks are expected to significantly underperform the market over the next 12 months. Short positions may capitalize on potentially negative price returns.
14
Price Based
Momentum
7
Size
49
Volatility
20
Fundamental Based
Value
62
Quality
47
Growth
16
Negative Factors (Bottom 20%)
Momentum: Stocks in downtrends and with significantly lagging momentum should be avoided.
Volatility: Stocks of the highest volatility typically underperform and pose unduly higher risk.
Growth: Stocks of the lowest-growth companies typically underperform the market.
