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 ?
According to the Bank of Russia's estimates, industrial production in October dropped on the prior month; so too did it on an annualised basis, stripping out seasonal and calendar effects.
Data adjusted for seasonal and calendar effects show an increase of 4.
7 percent month-on-month in July, adjusted for seasonal and calendar effects, the federal statistics authority Destatis said.
While the combination of soft comps and calendar effects should result in a solid-looking first quarter result, we retain our negative stance, believing that M&S's clothing and home division will prove more difficult and costly to turn around than expected," he said.
Although the services CPI fell in March, the down-tick is attributable to calendar effects related to the timing of the Easter holiday, which fell early last year.
Fashion retail company H & M Hennes & Mauritz AB (STO:HMB) reported on Wednesday that its sales including VAT increased by 3% in local currencies adjusted for negative calendar effects in the month of February 2017, as compared to the same month last year.
Calendar effects distort the seasonally adjusted series and can result in false economic trend analysis.
CALENDAR EFFECTS AND WEATHER EFFECTS In reading the paper, I was struck by the parallels between the weather effects that are its subject and the calendar effects that plagued the interpretation of payroll employment data in years past.
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.