IDEAS home Printed from https://ideas.repec.org/a/sae/padigm/v5y2001i1p33-45.html
   My bibliography  Save this article

Relative Strength Hypothesis of Weak form Efficiency in Indian Stock Market: An Empirical Study

Author

Listed:
  • Deepak Chawla
  • Munish Makkad

Abstract

The objective of the paper is to test relative strength hypothesis, which states that the stocks, which have done better than market in the past should continue to do so in future. The objective is pursued with the help of data on closing stock prices of 49 companies for the period April 1996 to March 2000. The Spearman's rank correlation using data on returns of 49 stocks for lag period of one-month, three-months, six-months and one-year is computed. The results indicate that relative strength hypothesis may be accepted for 1-month lag period. However, there is not enough evidence for relative strength hypothesis to hold good for lag periods of 3-months and above. The paper concludes by discussing the mplications of the study and suggestions for future research.

Suggested Citation

  • Deepak Chawla & Munish Makkad, 2001. "Relative Strength Hypothesis of Weak form Efficiency in Indian Stock Market: An Empirical Study," Paradigm, , vol. 5(1), pages 33-45, January.
    • Handle: RePEc:sae:padigm:v:5:y:2001:i:1:p:33-45
    DOI: 10.1177/0971890720010105
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/0971890720010105
    Download Restriction: no
    File URL: https://libkey.io/10.1177/0971890720010105?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:padigm:v:5:y:2001:i:1:p:33-45. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.