Calendar effect


Also found in: Wikipedia.

Calendar effect

Describes the tendency of stocks to perform differently at different times. For example, a number of researchers have documented that historically, returns tend to be higher in January compared to other months (especially February). Others have documented returns patterns across days of the week and within the day. Some of these patterns are found in volume and volatility as well as returns.

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.
References in periodicals archive ?
Sales in December were affected by a negative calendar effect of approximately 3 percentage points.
According to the company, sales in July 2016 were negatively affected by a calendar effect of about 3% points, due to fewer trading days compared with the previous year.
Traffic in March 2014 was mainly affected by a calendar effect due to the half-term holiday dates for schools in the Paris area, which this year were from 15 February to 3 March, as opposed to 2 to 18 March in 2013.
Following disappointing February results, depressed by the unfortunate calendar effect, March data softened expectations of the rapidly approaching recession.
We consider chain-ladder-type models extended with a calendar effect used for reserving in general insurance as suggested by Zehnwirth (1994).
The company says the decline is due to a negative calendar effect, as well as to the impact of bad weather in July, which hurt sales of fruit, vegetables, beverages and seasonal goods.
10) Statistics Sweden has calculated that the calendar effect on GDP growth 2004 will be 0.
There has been a kind of calendar effect, with Christmas relatively late in the week this year.
The calendar effect in the main markets, with fewer working days, did not slow down the results for the month of April and the companys deliveries rose by 16.
According to the company, sales in April 2016 were positively affected by a calendar effect of about 6% points, due to additional trading days compared with the previous year.
Sales in April have mainly been affected by unfavorable weather but also by a very negative calendar effect.
According to ICA Gruppen, it estimates the calendar effect for April 2016 to be a negative 2.