For Which Countries Does Stockopedia Have Best Data?

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23rd Oct '17 by pone

6 comments 5262 reads

I am new to Stockopedia, and I was attracted to it because I wanted good coverage for UK stocks. Which other countries does Stockopedia cover with high quality? I'm interested in whether the QVM ratings are more accurate in some markets than others.

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Pone

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6 comments

Rusty2

23rd Oct '17

It works very well in Europe. You can see performance stats here: https://www.stockopedia.com/stockranks/performance/

Also there was a post about best performing areas this year.

I notice on the screens Europe often outperform s the uk. Usa has not performed so well.

Mechanical Bull

23rd Oct '17

I posted a question on this theme back in May and Ed Croft helpfully provided some very useful performance charts:

https://www.stockopedia.com/content/are-high-stockrank-strategies-working-in-non-european-markets-183592/

There are indeed some striking differences in QVM performance between different countries/regions. However, this is more likely explained by factors other than the underlying quality of the data.

For example, high Stockranks have not performed particularly well in Australia recently, but they have a huge mining sector and so their QVM performance charts are particularly susceptible to speculative cycles.

Stockranks have also not done that well in the U.S over the past 2-3 years. One likely theory is that the U.S. market is more efficient, but it may be also that the US market is very highly valued (and most likely over valued).

pone

1st Nov '17

So my hypothesis is that the US has far too much money and far too much money management chasing far too few high-quality companies. As a result, valuations may have been pushed up there faster than QVM methodology was able to detect changes.

The question becomes is this due just to over-valuation, or does it also imply that the money managers in the US have a more sophisticated methodology? That should be a testable question? If it is over-valuation, the companies that become high-quality in QVM would get bid up in advance in the same amounts as the companies that do not later become high-quality using QVM. If it is about money managers having better techniques, then the stocks that will become high-quality in QVM should have been pushed up higher in advance than the stocks that do not later become high-quality.

It would be interesting to see Ed or his staff research the data and publish a conclusion.

Logic

1st Nov '17

It isn't that there is more money or wiser investors in the US.

Someone wise pointed out that while the SR deciles are equal weighted, the index they track is market cap weighted. With a small number of the largest companies in the US continuing to drive most of the stock market gains, it is not unexpected that most or all the deciles will underperform. Indeed, if you play arouind with the graphs you will eventually find points in time where all stock rank deciles underperform the index.

Rusty2

1st Nov '17

I have a few theories: Stockopedia performs better for small companies, if you look at performance figures for the UK, companies >£350m in the 90-100 band increased 101% since inception, if you then add in companies >10m the figure is 134%, add in >1m it increases to 152%. VM has been the best performing out of the 3. The EU has similar figures to the UK accept the >10m is similar to >1m figure. Now as far as I know the US has more larger companies, £350m would be considered a small cap there, I have read smaller companies have underperformed there recently. The 70-90 bands have outperformed the 90-100 band so yes it could be the market is more efficient. I would agree that some of those large caps are looking overvalued now considering their growth is low. Note that the US section on Stockopedia has been going a shorter time.

iwright7

1st Nov '17

Another point to note is that UK Aim 100 constituent companies are up a whopping +37% from Oct 16 to Oct 17 and are still having a great run. So depending on company size selection criteria it is necessary compare gains with its most relevant benchmark.

https://www.stockopedia.com/in...

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For Which Countries Does Stockopedia Have Best Data?

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Pone

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