IlliqAmihud

Amihud Illiquidity — Amihud 2002

Liquidity

Quick facts

Factor ID IlliqAmihud
Display name Amihud Illiquidity
Family Predictor
Category Liquidity
Direction higher_expected_return
Status supported
Paper Amihud 2002
Source tables daily
Required fields ret;amount
PIT required no
Coverage 2010-02-03 – 2026-05-15 · 679,322 rows · 99.2% of panel

Formula

mean(abs(ret) / amount over t-21 through t-1)

Average absolute return divided by RMB trading amount over the prior month.

China adaptation

Clip or floor amount when needed to avoid divide-by-zero artifacts in thin trading.

Direction-adjusted cumulative return

1.00 8.88 16.75 24.63 32.50 2010-02 2014-02 2018-03 2022-04 2026-04

Return metrics

Metric Value
Months in sample 195
Monthly mean 1.8826%
Monthly std 4.7192%
Annualized Sharpe 1.38
t-stat (simple) 5.57
Hit rate (months > 0) 69.2%
Last 12M compounded 6.70%
Cumulative wealth (start = 1) 30.848

Recent 12 months

Month L/S return Cumulative Names
2025-05 +2.54% 29.646 5129
2025-06 +3.61% 30.715 5140
2025-07 -5.47% 29.035 5143
2025-08 +0.91% 29.300 5147
2025-09 +5.45% 30.897 5150
2025-10 +5.19% 32.502 5152
2025-11 -4.88% 30.916 5162
2025-12 +1.17% 31.279 5167
2026-01 +0.65% 31.484 5178
2026-02 +3.17% 32.481 5180
2026-03 -3.30% 31.411 5187
2026-04 -1.79% 30.848 5174

Known data issues

Very strong current result needs tradability and transaction-cost robustness checks.

Notes

A-share liquidity premium may also capture shell and retail constraints.

See also: Liquidity family, Factor library, Factor returns.