VolMkt

Volume-to-Market-Cap — Haugen and Baker 1996

Liquidity

Quick facts

Factor ID VolMkt
Display name Volume-to-Market-Cap
Family Predictor
Category Liquidity
Direction lower_expected_return
Status supported
Paper Haugen and Baker 1996
Source tables daily;daily_basic
Required fields amount;mkt_cap_cmp
PIT required no
Coverage 2011-01-24 – 2026-05-15 · 617,718 rows · 90.2% of panel

Formula

mean(amount over t-252..t-1) / mkt_cap_cmp

Trailing 12-month average daily RMB trading amount scaled by market capitalization.

China adaptation

Uses RMB amount and RMB market cap from Tushare.

Direction-adjusted cumulative return

0.67 0.93 1.18 1.44 1.69 2011-01 2014-11 2018-09 2022-07 2026-04

Return metrics

Metric Value
Months in sample 184
Monthly mean 0.2105%
Monthly std 4.4036%
Annualized Sharpe 0.17
t-stat (simple) 0.65
Hit rate (months > 0) 53.8%
Last 12M compounded -1.39%
Cumulative wealth (start = 1) 1.234

Recent 12 months

Month L/S return Cumulative Names
2025-05 -5.48% 1.183 5046
2025-06 +4.49% 1.236 5055
2025-07 -3.06% 1.198 5057
2025-08 +2.76% 1.231 5062
2025-09 +0.46% 1.237 5069
2025-10 -1.47% 1.219 5075
2025-11 -0.09% 1.218 5081
2025-12 +0.49% 1.224 5088
2026-01 -1.68% 1.203 5095
2026-02 +4.55% 1.258 5099
2026-03 -0.05% 1.257 5105
2026-04 -1.84% 1.234 5101

Known data issues

None recorded.

Notes

Mechanically correlated with Turnover.

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