ZeroTrade12M

Zero-Trade Days (12M) — Liu 2006

Liquidity

Quick facts

Factor ID ZeroTrade12M
Display name Zero-Trade Days (12M)
Family Predictor
Category Liquidity
Direction higher_expected_return
Status supported
Paper Liu 2006
Source tables daily
Required fields vol
PIT required no
Coverage 2011-01-24 – 2026-05-15 · 617,718 rows · 90.2% of panel

Formula

count(vol==0 over t-252..t-1)

Number of zero-volume trading days in the prior twelve months.

China adaptation

Same as ZeroTrade1M but over a full year.

Direction-adjusted cumulative return

0.82 0.87 0.93 0.98 1.03 2011-01 2014-11 2018-09 2022-07 2026-04

Return metrics

Metric Value
Months in sample 184
Monthly mean -0.0669%
Monthly std 0.7205%
Annualized Sharpe -0.32
t-stat (simple) -1.26
Hit rate (months > 0) 48.9%
Last 12M compounded -0.11%
Cumulative wealth (start = 1) 0.880

Recent 12 months

Month L/S return Cumulative Names
2025-05 -0.33% 0.878 5046
2025-06 +1.24% 0.889 5055
2025-07 +0.38% 0.892 5057
2025-08 -0.19% 0.891 5062
2025-09 -0.30% 0.888 5069
2025-10 +0.84% 0.895 5075
2025-11 +0.77% 0.902 5081
2025-12 -0.99% 0.893 5088
2026-01 -0.20% 0.891 5095
2026-02 +0.14% 0.893 5099
2026-03 -1.29% 0.881 5105
2026-04 -0.14% 0.880 5101

Known data issues

Same as ZeroTrade1M — suspension-driven zeros dominate.

Notes

None recorded.

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