A study at the University of Karbala discusses the use of the 52-week momentum approach in building a superior active portfolio

A master’s thesis at the College of Management and Economics at the University of Karbala discussed the use of the 52-week momentum approach in building a superior active portfolio – an applied study in the Iraqi stock market for the period from January 2016 to November 2023.

The study, presented by student Ahmed Falah Hassan Al-Safi, aimed to verify whether momentum strategies based on returns to the highest price within 52 weeks of stocks listed on the Iraqi Stock Exchange achieve unusual profits.

The study concluded that, in light of the 52-week high price strategy and during the two periods before and during the COVID-19 pandemic, it was found that all momentum strategy portfolios with the winning and losing portfolio were unable to cover the cost of financial market transactions before and during the COVID-19 pandemic.

The study recommended that if the Iraqi investor wants to adopt the momentum strategy for the highest price within 52 weeks, he should have the global market in front of him because it is not possible to use it in the Iraqi market.