Eastern Halloween effect: A stochastic dominance approach

David Chui, Wui Wing Cheng, Sheung Chi Chow, Ya LI

Research output: Contribution to journalArticlepeer-review

5 Citations (Scopus)

Abstract

The Eastern market wisdom of “May is poor, June is bleak, and July will turn around” unveils an international stock markets dynamic that lower returns in May followed by even worse return in June but rebounding back to an upward trend in July. This wisdom is termed as “Eastern Halloween” effect in this paper which has some similarities with the traditional Halloween Effect. However, the traditional risk approaches fail to explain this Eastern Halloween effect satisfactorily. We apply stochastic dominance method to examine the Eastern Halloween effect and provide solid evidence of existence of Eastern Halloween effect.

Original languageEnglish
Article number101241
JournalJournal of International Financial Markets, Institutions and Money
Volume68
DOIs
Publication statusPublished - Sept 2020

Keywords

  • Halloween effect
  • Sell in May and go away
  • Stochastic dominance

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