This is mostly a question for the Stockopedia team as I'm not sure who else would have the data

From the Stockranks performance graphs, clearly one can see that in most markets, the outperformance of the highest quintile/decile/vigintile of Stockranks is negatively correlated with market cap (microcaps with high stock rank generally perform higher than large caps with high stock rank).

But from the Risk Ratings guide we learn a few other things:

  • Most microcaps have a very high Risk Rating (Highly Speculative or Speculative)
  • High Stockrank stocks are usually not Highly Speculative
  • Highly Speculative and Speculative stocks have significantly underperformed (at least in the limited time period shown by Stockopedia)

Has anyone been able to look at the intersection of Stockrank, Risk Rating and Market Cap?  Meaning, if high Stockrank microcaps outperform, but most microcaps are highly speculative and highly speculative stocks underperform, is the outperformance of high Stockrank microcaps driven by the very small subset of those stocks that have conservative or average Risk Ratings?  Or does the relationship between Risk Rating and outperformance not hold for either high Stockranks, low market cap, or both?

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