TY - JOUR T1 - Comovement as an Investment Tool JF - The Journal of Portfolio Management SP - 106 LP - 111 DO - 10.3905/jpm.2004.412325 VL - 30 IS - 3 AU - Bradford. Cornell Y1 - 2004/04/30 UR - https://pm-research.com/content/30/3/106.abstract N2 - A new tool for discovering mispriced securities is based on an analysis of comovement in asset prices. Recent research demonstrates that comovement can be due to both the trading patterns of noise traders and underlying economic fundamentals. As comovement can be measured much more accurately than expected returns, it can be used to identify securities for which the influence of noise traders is high and thus the securities most likely subject to mispricing. Analysis of comovement is a screening device that can provide important information about potential mispricing. ER -