The Pack Mentality: A Behavioral Finance View of Stock Price Comovement
By looking carefully at data on individual stock prices, it is easy to find many examples of “comovement” – groups of stocks whose prices tend to move together. For instance, prices of stocks in the same industry tend to move together, as do the prices of small-cap stocks, value stocks, and closed-end funds.
Content: Article | Authors: Andrei Shleifer, Jeffrey Wurgler, Nicholas Barberis | Source: “Capital Ideas” | Subjects: Finance, Industry Specific | Industry: Investment Banking