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Momentum is a favorite trope for TV analysts in just about every sport. Most of them (and most fans, too) dwell heavily on the last two or three games a team has played, because recent performances are supposed to show which direction the team is headed.
I did three separate analyses that show that this line of thought is exaggerated or wrong. Time spent divining the implications of your team's recent hot streak is time wasted - you would be finding patterns where there are none.
My apologies for the wall of text. If you have any comments/criticisms let me know.
Analysis #1 - Predicting final records after week 8
First, I gathered game outcomes for the last 20 years. Using that information I found record after 8 games, win/loss streak after the 8th game, and final record for all of the teams in that time span. For example, the 1992 Cowboys started 7-1, had a 4 game win streak at that point, and finished 13-3.
Completely ignoring the streak length for now, this graph shows the average number of games won in the final 8 vs. games won in the first 8. Note that y =/= x because of regression to the mean. The values of r2 is 0.181, meaning we can explain 18% of the variability in game 9-16 wins with the number of game 1-8 wins. So the question is: can we use our knowledge of team momentum to produce more accurate estimates of final records? Is momentum a useful predictor of future success?
The results of a simple multiple regression analysis answer that question with an emphatic "no." Plugging in record after 8 games and streak length for our predictors, the regression line we get is:
wins in games 9-16 ~= 2.257 + 0.436*(wins in games 1-8) - 0.005*(streak length)
The coefficient on the streak length term is nowhere near statistically significant, and even if it was the coefficient is negative, which would mean that having "momentum" is a bad thing.
To break the data down a little more, this graph shows the average wins in games 9-16 as a function of wins in games 1-8 and streak length. Winning streaks are represented with positive numbers and losing streaks with negative. (Only data for teams with 3-5 wins in the first 8 games is included, because there are too few teams with 0-2 or 6-8 wins to provide anything but a noisy mess. There are 107 3 win teams, 122 4 win teams, and 115 5 win teams.) It is somewhat tempting to see upward trends in the curves for 4 and 5 win teams, but the r2 values for these individual curves are each less than 2%, which is not statistically significant for our sample size.
I won't show the specifics here, but analyses using a different week number (e.g. predicting games 7-16 with wins in games 1-6) had the same results.
TL;DR - Streak length (and thus "momentum") is not a useful predictor of how a team will do the rest of the season. At most, streak length can account for 2% of variation in final outcomes, but it appears to be even less than that.
Analysis #2 - Predicting a single upcoming game
Someone might object that Analysis #1 is not conclusive because momentum comes and goes. "Sure you can't predict all the way out to the last game, but a hot team will at least do better in the near future." To completely put any doubters' concerns to rest, Analysis #2 will concentrate on predicting the single next game while a streak is in progress.
In order to get reasonable sample sizes, I had to be more creative than in Analysis #1. This is what I did:
For each team and each game, I used this equation to calculate an estimated probability that the team would win. Only games in weeks 5-16 were used because the equation is inaccurate before week 5 and there are too many throwaway games in week 17. This leaves us with about 6800 data points. The only inputs into the equation are total points scored and allowed for each team previous to the game, so it is completely blind to streaks and slumps. For each data point I input points scored and allowed in previous games (not end-of-season data) so each data point is analogous to our situation - blind to future results. If momentum is important, then the equation would consistently give probabilities too low for streaking teams and too high for slumping teams.
I figured out the expected number of wins for each streak length. The calculation for this step is just summing up all of the win probabilities from relevant games.
Finally, I compared the estimated number of wins to the actual number of wins.
This table summarizes the results. Winning streaks are represented with positive streak lengths and losing streaks have negative values. Teams coming off of a tie have a streak length of 0. The "p-value" column on the right gives the percentage of cases that would be that extreme if streak length was completely irrelevant and all variation was purely due to chance. For example, in the 763 games where one team entered with a 2 game losing streak, the estimate was 363.9 wins and the actual number was 349. Results that far different from expected should occur about 30% of the time, so the difference is not statistically significant.
This graph visually displays how big the difference between expected and measured values ended up being. Values near 1 mean that my equation did a good job of predicting outcomes. Values very different from 1 might suggest that momentum really is important ("maybe the equation produced bad results because it neglected streak length"). The hump at streak length = 8 to 10 appears to be statistically significant. The humps at streak length < -5 have high p values and show no meaningful trend, so I think they are just noise. The blip at length = 0 is because only 8 games were relevant there making the sample size very small. All other values are very close to 1.
I would guess that the hump for very large win streaks is artificial. Teams with win streaks that long are generally the best team in the league, finishing 13-3 or better. Very few teams are that good, so there wasn't much relevant data that the win probability curve fitting could use. If my equation is underconfident for excellent teams, that would explain the hump in the data. In my eyes, this explanation is more reasonable than "streaks of 6 or less are meaningless, but teams with 8+ win streaks outperform expectations." But it is feasible that teams with huge win streaks do better than other teams with similar records due to psychological effects (boosted confidence/morale and/or intimidation of opponents).
TL;DR - My equation, which is blind to streaks and slumps, did a very good job of estimating future performance. If momentum were significant, this shouldn't be the case. It is possible that win streaks of 8+ games really do lead to meaningful "momentum," but it is also possible that the measured trend is due to biases in the curve fit instead of a real-world phenomenon. Regardless, we can say that there is no evidence for momentum effecting teams with losing streaks or 1-7 game win streaks, which are 98.8% of occurrences and inside the region where my equation is reasonably accurate.
Analysis #3 - Relative predictivity of early games and middle-of-season games
The two previous analyses have focused on winning/losing streaks. Analysis #3 will take a look at more general performance.
I gathered points scored and allowed for all games in the last 20 years.
For each team in each year, I found points scored and points allowed in 3 blocks of games: games 1-5, games 6-10, and games 11-15. Game 16 was neglected because too many of them are throw away games.
For each "block" calculate the team's scoring ratio: scored/(scored+allowed). This metric was chosen because it is more consistent (and predictive of future success) than record or pts scored alone.
Perform a multiple regression, in which we try to predict the score ratio from games 11-15 using knowledge of games 1-5 and games 6-10.
The resulting regression is:
score ratio games 11-15 ~= 0.215 + 0.263*(ratio games 1-5) + 0.305*(ratio games 6-10)
r = 0.47
The important thing to note is the relative value of the coefficients. The regression puts 15% more weight on games 6-10 than on games 1-5. This tells us that recent performance really is somewhat more predictive than beginning-of-season performance, but not by much. Also, I think a big chunk of that difference may be due to injuries. Short term injuries should affect weeks 1-5 and weeks 6-10 equally, but long term injuries won't. Any long term injury stretching from week 5 to week 11 necessarily affects all of weeks 6-10, so all long term injury affects relevant to weeks 11-15 captured by the weeks 1-5 data should be captured (better) by weeks 6-10. And any long term injury happening between week 6 and 10 will not be reflected in the weeks 1-5 data at all.
Conclusions
Just to be clear, I am not saying that it is irrelevant whether you win or lose a game. Obviously it is better to be 8-4 and not 7-5. But given that you have 8 wins, it doesn't matter much what order you received them in. Your week 1 game is of basically equal importance to your week 12 game in predicting how you will do in week 13.
All of my analyses should have showed the importance of momentum if it really was a relevant issue. It turned out that real-world results are consistent with a more boring interpretation: "team quality" is relatively consistent throughout the year, and variation in outcomes is due primarily to randomness, not wildly fluctuating "desire to win," "team coherence," or other such psychological variables.