Dual Momentum

Dual Momentum is an investment strategy that combines two approaches: Relative Momentum and Absolute Momentum. Relative Momentum compares the performance of different assets, like stocks and bonds, to identify which are stronger, shifting investments toward the leaders. Absolute Momentum assesses each asset’s own trend—investing only when it shows positive growth and avoiding or exiting when it declines. By combining these methods, Dual Momentum aims to improve returns and reduce risks by investing in assets that are both outperforming others and maintaining positive momentum, adapting dynamically to changing market conditions.