Strategies · Core
52-Week High Effect in Stocks
Overweight names near their 52-week high and underweight those far below — an anchoring/momentum hybrid.
Definition
Score = price / 52-week high. Long the high scores, short the low. Related to, but not the same as, 12-1 momentum (a name can be near the high with weak 12-1 and vice versa).
Why it matters
Anchoring on the high is a behavioral story with a simple ratio. It is easy to implement and easy to crowd.
Case
A grind-up market: most names sit near highs and the long book is the index. The short is the left-behind junk — until it bounces.
How to read it
How you treat new highs (trend) vs a ratio sort. Compare overlap with momentum before you run both.
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