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 ?
As dictated by the overreaction hypothesis, if there is significant return for the arbitrage portfolio (ACARlow liquidate-ACARhigh liquidate > 0), then overreaction is present in the market.
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.
Thus, if program trading does lead to price overreaction, this effect should be most pronounced in these stocks.
As the next section points out, considering various values of the lag j permits longer intervals for prices to correct following a price overreaction.
The proposition that program trading encourages overreaction as demonstrated by stock price reversals, implies that the index should be related to levels of program trading activity.
The overreaction null predicts that [beta] will differ from zero.
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.