MaxRet

Maximum Daily Return — Bali Cakici and Whitelaw 2011

Risk

Quick facts

Factor ID MaxRet
Display name Maximum Daily Return
Family Predictor
Category Risk
Direction lower_expected_return
Status supported
Paper Bali Cakici and Whitelaw 2011
Source tables daily
Required fields ret
PIT required no
Coverage 2010-02-03 – 2026-05-15 · 679,110 rows · 99.1% of panel

Formula

max(ret over t-21 through t-1)

Maximum daily return during the prior month.

China adaptation

Use adjusted daily returns and keep limit-up events in the signal.

Direction-adjusted cumulative return

0.96 2.26 3.56 4.86 6.16 2010-02 2014-02 2018-03 2022-04 2026-04

Return metrics

Metric Value
Months in sample 195
Monthly mean 0.9303%
Monthly std 3.6075%
Annualized Sharpe 0.89
t-stat (simple) 3.60
Hit rate (months > 0) 62.6%
Last 12M compounded -9.65%
Cumulative wealth (start = 1) 5.374

Recent 12 months

Month L/S return Cumulative Names
2025-05 -1.57% 5.854 5129
2025-06 +0.56% 5.887 5139
2025-07 -2.43% 5.744 5143
2025-08 -0.93% 5.691 5147
2025-09 +4.06% 5.922 5150
2025-10 +0.55% 5.954 5152
2025-11 -0.69% 5.913 5162
2025-12 +0.22% 5.926 5167
2026-01 -0.96% 5.869 5175
2026-02 +4.09% 6.109 5180
2026-03 -5.29% 5.785 5187
2026-04 -7.11% 5.374 5172

Known data issues

Suspension and relisting gaps can create extreme single-day returns.

Notes

Lottery demand is especially relevant in retail dominated A-shares.

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