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Is There A Relation Between Seeking Alpha Followers And The Return Of S&P500 Stocks?

Apr. 05, 2015 6:26 PM ETSPY, SPXU3 Comments
Harm Elderman profile picture
Harm Elderman's Blog
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As I wrote earlier in my previous instablog about the relationship between Seeking Alpha followers and DJ30 stock YTD returns it seemed that the stocks with fewer followers yielded a better YTD performance. From a theoretical and academicals perspective, that makes sense. This, as small stocks often outperform large stock, which has been proven many times in a variety of academic articles. So what about the S&P500?

I hereby post a sample of the first 100 stocks of the S&P500 (on alphabetical order) ranked on Seeking Alpha followers and YTD returns.

The YTD return of the top 50 followed stocks on SA average around 50% while the YTD return of the least 50 followed stocks average around 200%.

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