Spinoff · Other · Cusatis, Miles and Woolridge (1993)

Spinoffs

Long minus short portfolio using the original paper's sort and weighting, market-adjusted. Quarterly, 1926Q3 to 2024Q4.

Expected return · posterior mean, % per quarter
Next quarter
−1.77%
95% interval −2.68% to −0.43%
Next year
−1.49%
95% interval −2.46% to −0.32%
Next five years
−0.70%
95% interval −1.83% to 0.38%

OAP publishes no uniform quintile or decile portfolios for this signal, so only the paper's original portfolio convention is shown.

Cumulative market-adjusted return

−90% since 1926Q3 · log scale

Past performance, annualized

Window Mean Vol. Sharpe t
1926Q3–2024Q4 −1.23% 15.92% −0.08 −0.77
2020Q1–2024Q4 −17.61% 12.58% −1.40 −3.13
2024Q1–2024Q4 −6.92% 18.35% −0.38 −0.38

Forecast Sharpe ratio, per quarter

Horizon Mean 95% interval P(neg)
Next quarter −0.225 −0.343 – −0.053 0.99
Next year −0.189 −0.312 – −0.040 0.99
Next five years −0.087 −0.230 – 0.048 0.90
Category
Other
Form
Discrete
Data
Event
Predicted sign
Positive
Original sample
1965–1988