ZeroTrade6M

Zero-Trade Days (6M) — Liu 2006

Liquidity

Quick facts

Factor ID ZeroTrade6M
Display name Zero-Trade Days (6M)
Family Predictor
Category Liquidity
Direction higher_expected_return
Status supported
Paper Liu 2006
Source tables daily
Required fields vol
PIT required no
Coverage 2010-07-15 – 2026-05-15 · 651,398 rows · 95.1% of panel

Formula

count(vol==0 over t-126..t-1)

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

China adaptation

Same as ZeroTrade1M but over a longer window.

Direction-adjusted cumulative return

0.91 0.94 0.96 0.99 1.02 2010-07 2014-06 2018-06 2022-05 2026-04

Return metrics

Metric Value
Months in sample 190
Monthly mean -0.0152%
Monthly std 0.7540%
Annualized Sharpe -0.07
t-stat (simple) -0.28
Hit rate (months > 0) 49.5%
Last 12M compounded 0.07%
Cumulative wealth (start = 1) 0.966

Recent 12 months

Month L/S return Cumulative Names
2025-05 +0.55% 0.971 5084
2025-06 -1.27% 0.958 5097
2025-07 -0.44% 0.954 5105
2025-08 +0.83% 0.962 5106
2025-09 +0.81% 0.970 5119
2025-10 -0.33% 0.967 5128
2025-11 +0.80% 0.975 5130
2025-12 +0.29% 0.977 5138
2026-01 -0.27% 0.975 5140
2026-02 -0.70% 0.968 5143
2026-03 +0.88% 0.976 5145
2026-04 -1.03% 0.966 5136

Known data issues

Same as ZeroTrade1M — suspension-driven zeros dominate.

Notes

None recorded.

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