Market anomaly


Market anomaly

A market anomaly (or market inefficiency) is a price and/or return distortion on a financial market that seems to contradict the efficient market hypothesis.[1][2]

The market anomaly usually relates to:

There are anomalies in relation to the economic fundamentals of the equity, technical trading rules, and economic calendar events.

Anomalies could be fundamental,[3] technical, or calendar related. Fundamental anomalies include value effect and small-cap effect (low P/E stocks and small cap companies do better than index on an average). Calendar anomalies involve patterns in stock returns from year to year or month to month, while technical anomalies include momentum effect.

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