The monthly relative turnover rate spillover factor captures the deviation of short-term trading activity from the long-term average. A higher factor value (i.e., short-term turnover rate is higher than the long-term average) usually means that market sentiment is high, trading is overactive, and stock prices may be at risk of being overvalued, thereby reducing expected future returns. Conversely, a lower factor value may imply low market sentiment, inactive trading, and stock prices may be undervalued. This factor can be regarded as an indicator of market sentiment and short-term liquidity spillover, and is often used in quantitative stock selection and risk management. This factor is also related to overconfidence bias and the chasing-up and selling effect in behavioral finance.