overreact

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o·ver·re·act

(ō′vər-rē-ăkt′)
v.
To react with unnecessary or inappropriate force, emotional display, or violence.
References in periodicals archive ?
If program trading activity caused an overreaction on this date, and if a price correction occurred in the one trading period since the overreaction, then a price reversal is realized, provided the information arriving at t does not overwhelm the amount of price correction.
In other words, overreaction is tested within each of the high-, medium-and low-volume categories to examine the relationship between overreaction and trading volume.
If the returns are positive, then there is support for the overreaction hypothesis.
Overall, we document much stronger and more consistent overreaction in the Tehran market than did Mohd Arifin and Power [16].
We have established the presence of significant overreaction in the Tehran stock market.
The low liquidate minus high liquidate portfolio provides further support for the overreaction hypothesis, as the returns are consistently above 1% and statistically significant at 1% level for all weeks.
The overreaction for low-volume stocks is more persistent, as demonstrated by the relatively consistent ACAR throughout the holding periods.
Hence, a greater level of overreaction would be present for low-volume stocks than high-volume stocks.
Volume portfolios and concluded that high trading volumes are required for overreaction to occur.
However, overreaction is present only for periods of up to 12 weeks; thus, a portfolio holding period beyond 12 weeks would not be profitable.
Overall, we find strong evidence in support of the overreaction hypothesis in the Tehran market for periods ranging from 1 to 52 weeks.
Nevertheless, we expect that investors would be able to profit from overreaction despite the trading costs by adopting a 'smart' approach to portfolio construction as suggested by de Groot et al.