Published on: November 27, 2024
As we approach the year’s final month, investors often use seasonality analysis to predict how stocks will perform in December.
Seasonality analysis uses historical patterns to anticipate market movements based on time of year, helping traders make informed decisions about their portfolios
Seasonality analysis involves examining a stock’s historical performance. The core idea is to recognise how a stock has behaved during the same month in previous years
Key Elements of Seasonality Analysis
- Monthly Average Performance
This metric looks at a stock’s average return during a specific month over several years. If a stock has shown consistent positive returns in December over the past decade, it might be a good candidate for positive performance this year. - Positive Ratio
The positive ratio is a crucial statistic in seasonality analysis. It calculates how often a stock has closed higher in a particular month compared to its total number of years of data. A higher positive ratio indicates that the stock has reliably performed well during that month.
Here is the performance of the F&O stocks for December:
Here is the list of F&O stocks but using the Seasonality Scanner in RZone, you can scan for various stocks and sectors.
Here is how you can scan this:
- Login in the RZONE with your client code
- Click on Seasonality > Seasonality Scanner
3. Select Month and Group
4. Click on Scan and the result is here.
