6 Steps to build momentum portfolio | What is a momentum portfolio? | How to measure momentum?

A momentum strategy seeks to identify trend and persistence in stock returns and build a portfolio of it. The idea is that stocks that have been performing well are more likely to continue to perform well in the future. There are a number of ways to construct a momentum portfolio. One common approach is to use moving averages and another approach is by constructing a momentum portfolio using relative strength analysis. In this video, we discuss 6 steps to construct a momentum portfolio. If you are interested in learning more about momentum portfolios, this video is for you. By the end of the video, you will have a good understanding of how momentum portfolios work and whether or not they are a good fit for your investment portfolio. Time Stamps 00:00 Introduction 00:46 What is a momentum portfolio? 02:24 How to measure momentum? 03:25 Illustration 04:25 Time period of momentum 05:02 Steps to build momentum portfolio 05:22 Step 1 Define your tracking universe 07:32 Step 2 Clean closing price data 07:57 Step 3 Daily returns of the stocks 08:04 Step 4 Rank the stocks in the tracking universe 08:34 Step 5 Building momentum portfolio 09:44 Step 6 Rebalancing momentum portfolio 10:47 Conclusion Links to Refer Learn more about the stock market here: https://zerodha.com/varsity/chapter/m... Other Trading Strategies https://zerodha.com/varsity/module/tr... Impact of corporate actions on derivatives, company balance sheet and how to adjust historical data    • Impact of corporate action on derivatives,...   Other Important Links You can put your stock market knowledge to the test by taking the Varsity Certification test here: https://zerodha.com/varsity/certified/ Social Media Twitter -   / zerodhavarsity   Instagram - https://www.instagram.com/zerodhavars... #analysis #Investing #Finance #StockMarket #financialeducation #varsity #zerodha #momentum #portfolio Featured Playlist Beginners Guide to Personal Finance    • Mutual Funds Investing: A Step-by-Step Guide