Upon the Usage of Contrarian and Momentum Strategies as a Hybrid in the ISE

Abstract

The study aimed to determine whether the usage of contrarian and momentum strategies as a hybrid in the ISE porude better reversal than usage of these alone. Additionally, the questions such as can contrarian and momentum strategies produce important returns in different ranking and holding periods? And can the trading volume be used in predicting the reversals of various momentum portfolios in Turkish stock market? are tried to be investigated shortly. The basic assumptions of the study are respectively as follows: First of all, the statistical datas of the buy and sells are in the ISE reflect opinions and behaviours of the investors in the market. Second, although the global trend has a tendency to approach the financial markets, the market conditions in Turkey generates dissimilarities between the ISE and other international markets. The findings show that for some portfolios in different ranking and holding periods of hybrid strategy can produce abnormal return.