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.
Authors: Andrei Shleifer, Jeffrey Wurgler, Nicholas Barberis
Source: Capital Ideas
Subjects: Finance, Industry Specific
Industry: Investment Banking