calendar effects

Calendar Effect

The extent to which holding a stock at a particular time helps or harms returns. That is, some analysts believe that stocks perform better or worse on given days, months, or even years. Analysts disagree on which, if any, calendar effects are "real," but they can have an impact on the psychological outlook of investors, which can help or harm returns. For example, some investors believe that October is a bad month to buy because many of the great stock market crashes took place in October. Whether or not there is any evidence for this, it may discourage enough investors from buying that it actually will harm stock prices. Major examples of calendar effects include the January effect and the presidential election cycle theory.

calendar effects

The impact a particular day, week, or month a security is owned has on rates of return. For example, studies indicate tax selling produces downward pressure on stock prices during the end of the calendar year followed by upward price pressure in January. See also January effect.
References in periodicals archive ?
The model automatically accounts for relevant holidays, other calendar effects and daily events such as the opening and closing auctions of the different markets.
Like-for-like revenue, excluding calendar effects and car- fuel sales, fell 14 per cent in China, four percentage points more than analysts predicted.
In addition to calendar effects, the increased geopolitical tensions are likely to have played a role.
As well as calendar effects, increased geopolitical tensions likely played a role in this," it said in its July monthly report.
Work day adjustment is an adjustment for variations in monthly data, caused by calendar effects, different number of calendar and work days in the month, and national holydays - for example the presence of more days off in May could contribute to the decline in the production in some activities.
Meanwhile, data adjusted for seasonal and calendar effects shows that exports went up 4.
These two calendar effects had a negative net impact on resorts' operating incomes of around U7 million, which hampered performance in the first half of 2013.
These two calendar effects had a negative net impact on resorts' operating incomes of around[euro]7 million, which hampered performance in the first half of 2013.
Sequential momentum has deteriorated as, adjusted for seasonality and calendar effects, IP reversed about a third (-0.
SeeNews) - Nov 8, 2012 - Turnover in Germany's manufacturing industry, adjusted for seasonal and calendar effects, declined by 3% in September 2012 compared with the previous month after a rise of 0.
Results for LTC are close to those obtained for death benefit insurance, with the same conjecture of partial funding due to the importance of calendar effects after the runoff decision.
1 percent in June compared with the previous month, a fall led by a decline in the construction sector and exacerbated by calendar effects, official data showed Friday, according to AP.