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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.

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Subject(s): Finance, Industry Specific

Industry: Investment Banking

Source(s): Capital Ideas

Author(s): Andrei Shleifer, Nicholas Barberis, Jeffrey Wurgler

Posted: 2003-11-03

# Views: 45