Research Interests
Asset Pricing, Behavioral Finance, Big Data, and Machine Learning.
Publications
- "Optimal Conditional Mean-Variance Portfolio Averaging" with Lipeng Yao and Xinyu Zhang, Management Science, accepted.
- "Extrapolation: Price vs. Value" with Huacheng Zhang, Guofu Zhou, and Yingzi Zhu, Journal of Portfolio Management, accepted.
- "Nominal Prices, Retail Investor Participation, and Return Momentum" with Jun Du, Yu-Jane Liu, Yushui Shi, Avanidhar Subrahmanyam, and Huacheng Zhang, Management Science 72, 2064-2089, 2026.
- "What Difference Do New Factor Models Make in Portfolio Allocation?" with Frank J. Fabozzi, Fuwei Jiang, and Jiexun Wang, Journal of International Money and Finance 140, 102997, 2024.
- "Are Bond Returns Predictable with Real-Time Macro Data?" with Fuwei Jiang, Kunpeng Li, Guoshi Tong, and Guofu Zhou, Journal of Econometrics 237, 105438, 2023.
- "Shrinking Factor Dimension: A Reduced-Rank Approach" with Ai He, Jiaen Li, and Guofu Zhou, Management Science 69, 5501-5522, 2023. Appendix
- "Presidential Economic Approval Rating and the Cross-Section of Stock Returns" with Zilin Chen, Zhi Da, and Liyao Wang, Journal of Financial Economics 147, 106-131, 2023. PEAR index (1981:04–2023:12)
- "Scaled PCA: A New Approach to Dimension Reduction" with Fuwei Jiang, Kunpeng Li, Guoshi Tong, and Guofu Zhou, Management Science 68, 1678-1695, 2022. Special Issue on Data-Driven Prescriptive Analytics. Appendix; MatLab code
- "Expected Return, Volume, and Mispricing" with Yufeng Han, Dayong Huang, and Guofu Zhou, Journal of Financial Economics 143, 1295-1315, 2022.
- "Are Disagreements Agreeable? Evidence from Information Aggregation" with Jiangyuan Li and Liyao Wang, Journal of Financial Economics 141, 83-101, 2021. PLS disagreement index (1969:12–2020:12); Appendix
- "Time-Series Momentum: Is It There?" with Jiangyuan Li, Liyao Wang, and Guofu Zhou, Journal of Financial Economics 135, 774-794, 2020. Data and MatLab code; Python code
- "Upper Bounds on Return Predictability" with Guofu Zhou, Journal of Financial and Quantitative Analysis 52, 401-425, 2017.
- "Investor Sentiment Aligned: A Powerful Predictor of Stock Returns" with Fuwei Jiang, Jun Tu, and Guofu Zhou, Review of Financial Studies 28, 791-837, 2015. PLS sentiment index (1965:07–2023:12); Raw sentiment data and MatLab code
Working Papers
- "Do Asset Embeddings Need Complete Holdings? Lessons from China" with Zitong Cheng, Xiaobin Liu, and Tao Zeng (Jul 2026)
- "Modeling Institutional Investors in China" with Yinghua Fan and Guanhao Feng (Nov 2025)
- "Partisan Hedge Funds" with Zilin Chen, Lin Sun, and Melvyn Teo (Dec 2025)
- "Inelastic Integration: The Price of Market Access" with Yinghua Fan, Guanhao Feng, and Xiao Qiao (Jul 2026)
- "The Simple Virtue of Complexity: Double Descent in Return Prediction" (Jul 2026)