Contrarian Investment Strategies in the German Stock Market: 1988-2014

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2015 (EN)
Contrarian Investment Strategies in the German Stock Market: 1988-2014 (EN)

Anastasiadis, Konstantinos (EN)

School of Economics, Business Administration and Legal Studies, MSc in Banking and Finance (EL)
Archontakis, Fragiskos (EN)
Pouliassis, Panos (EN)
Grose, Christos (EN)

This dissertation was written as part of the MSc in Banking and Finance at the International Hellenic University. Overreaction hypothesis suggests that individuals have the tendency to “overreact” to unexpected good or bad news. Literature provides a large number of papers where it is examined whether this hypothesis has implementation in the behavior of investors concerning equity markets. Additionally, their empirical results, based on logarithmic return data, indicate that there is evidence that contrarian strategy can be fruitful for long - term periods, by creating portfolios based just on their participant stocks past performance. However, this issue has received little attention concerning the German stock exchange. After examining eight 36 - month non - overlapping portfolio formation periods for a three-year time horizon after the formation period, the results argue with the strategy’s profitability as the study’s out comes are both unstable and negative . This study indicates that further examination should be conducted on whether the phenomenon exists in the German stock market, given that the outcomes obtained in the literature are rather robust, putting the used methodology under scrutiny.This dissertation would be impossible to have been completed without the supervision and constant help of the dissertation’s supervisor Dr Panos K.Pouliasis. Furthermore, I would like to thank my family for their constant encouragement and support during the whole program (EN)


contrarian strategy (EN)

Διεθνές Πανεπιστήμιο της Ελλάδος (EL)
International Hellenic University (EN)



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