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...
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