52-week high approach
factor.formula
Current closing price
Highest price in the past 52 weeks
52-week high approach
This factor is measured by calculating the ratio of the current closing price to the highest price in the past 52 weeks. Specifically:
- :
Indicates the stock's closing price for the current trading day.
- :
It represents the maximum value of all closing prices from the past 52 weeks (or one year) to the current trading day, that is, the highest price in 52 weeks.
- :
The final factor value is the ratio of the current closing price to the 52-week high price. The closer the ratio is to 1, the closer the current price is to the 52-week high; the smaller the ratio is, the further the current price is from the 52-week high.
factor.explanation
This factor reflects the momentum effect of a stock by measuring the relative position between the current stock price and the highest price in the past 52 weeks. When a stock price is close to its 52-week high, it often means that the stock has a strong upward trend and the market may have a higher attention and willingness to buy it. This phenomenon may be due to investors' chasing psychology or the market's recognition of the improvement in the fundamentals of the stock. Generally speaking, stocks with a higher degree of proximity to the 52-week high price may have a higher potential for excess returns in the subsequent period.