Can investors gain from investing in certain sectors?

Paresh Kumar Narayan, Huson Ali Ahmed, Seema Narayan

Research output: Contribution to journalArticleResearchpeer-review

10 Citations (Scopus)


In this paper, we analyse investor behaviour on the NYSE. We show that average returns from dynamic trading strategies, regardless of the different portfolio constraints, out-perform passive trading strategies in all sectors. In addition, the performance of dynamic strategies is much more impressive in some sectors than in others. We also undertake a profitability and safety analysis based on a portfolio of high-performing sectors and show that at higher levels of expected returns, a rise in profitability comes at the expense of less safety. Our results, on the whole, reveal that investors’ can gain substantially by investing in certain sectors.

Original languageEnglish
Pages (from-to)160-177
Number of pages18
JournalJournal of International Financial Markets, Institutions and Money
Publication statusPublished - May 2017
Externally publishedYes


  • Dynamic trading strategies
  • Mean-variance
  • Portfolio
  • Profitability
  • Sectors

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