A novel research study finds that stocks displayed next to those that have higher returns over the past two weeks are associated with higher returns in the future week and then revert in the long run. Wow, just being displayed closer to winner may make other stocks winners for traders. The explanation is simple. There is a strong overconfidence bias coupled with limited attention. Investors will trade more based on positive investment experience and will pay attention to the display of neighboring assets. This is all based on listing codes. See "Attention Spillover in Asset Prices" in the Journal of Finance.
I tread lightly with these types of tests which may be hard to replicate, but it is suggestive for why momentum continues to work in so many different markets, asset classes, and venues.
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