This is a chart of UK stocks’ performance over the last six months, divided into Stocko rank quintiles. The FTSE all-share index (purple line) has done better than ALL theshare groups of which it is composed. How can that be???
I’m quite perplexed!
A grizzled veteran of the NHS
FTSE All Share index is market capitalisation weighted. The others are all equally weighted. So it just means that larger cap stocks have performed better than smaller cap stocks over the period.
@stehuk is correct... this is entirely normal. The FTSE All Share is market cap weighted... not equal weighted... so it doesn't compare like for like. If we had an equal weighted index to compare the StockRanks with it would be great... but unfortunately we don't as FTSE don't provide it.
How bizarre. Thanks for the explanation. I always assumed it was one stock one vote so to speak. So some
Ed
How about Stockopedia creating its own equal weighted version of the All Share index? Then we could all compare like with like. Stockopedia must already have all the share price data required, and I would think that the calculations required would be well within the capabilities of the team. It wouldn't necessarily have to be re-calculated every second. Just using end of day calculations would serve to make the above chart more meaningful.
