Momentum strategies, due to their strong performance, are common investment methods designed based on the continuation of past asset performance. However, these strategies face sharp declines in high volatility conditions and market reversals. In this research, the impact of Constant Volatility Scaled Momentum (cMOM) and Semi-Constant Volatility Scaled Momentum (sMOM) strategies is examined using data from 100 stocks that constitute a significant portion of the Tehran Stock Exchange market value during the years 2013 to 2024. These strategies aim to reduce risk and improve risk-adjusted returns by adjusting for recent volatility. The results show that sMOM outperforms cMOM in factor-spanning tests and acts as a complement to traditional momentum. Moreover, its strong correlation with traditional momentum and its relative independence from market risk were confirmed in this study. These findings indicate that volatility adjustment does not always lead to performance improvement, and market conditions play a crucial role in the efficiency of these strategies. The results demonstrate that neither the constant volatility nor the semi-constant volatility scaled momentum strategies consistently outperform one another.
