Our enduring focus at Stockopedia is to serve the interests of individual investors, the majority of whom are primarily interested in their own local stock markets. As a UK founded company, we started off serving a broad base of UK subscribers who were focused on the amazing breadth and diversity of stocks on the London Stock Exchange. The StockRanks were originally designed to serve our UK subscriber base by ranking across the UK stock market alone. This local ranking universe has proven extremely popular but also highly effective, as evidenced by the great performance results since the StockRanks were conceived in 2013.
As we’ve grown our coverage internationally, our stock market universe has grown - to Europe, American and now to Asia, Canada and Australasia - but we’ve been determined not to lose this local focus for the StockRanks, not only for UK investors, but for local investors in any market around the world.
We’ve designed the StockRanks to work ‘fractally’ - with every stock ranked locally, regionally and globally - to provide the best solution no matter what your investment universe.
We provide 3 versions of the StockRank for every company on Stockopedia. Every stock is ranked against three market sets:
These settings can be changed permanently from your ‘Site Settings’ page available from the personal dropdown menu (top right of the site). So if you’d rather use regional or global StockRanks as default you may do so.
On StockReports, any subscriber may toggle temporarily between the local, regional and global StockRanks by using the dropdown menu above the StockRanks. This provides a useful mechanism to see if your favoured stocks really rank as well versus the rest of the world as they do within your own market. After all, your home market may be overvalued !
The majority of subscribers will not need to play with these StockRanks settings as they are primarily interested in their own local markets. If though you are a regional or cross regional subscriber here are some guiding notes.
The ‘local’ StockRanks are best used:
The ‘regional’ StockRanks are best used:
The ‘global’ StockRanks are best used:
The ranks for all three are highly correlated, but it should not be unexpected that the difference between local and global StockRank can be more than 10 percentile ranks.
If you are a global subscriber and have set your preferred StockRank to ‘local’ and screen the market for 95+ ranked stocks you will need to understand your results. Your results will return the “top 5% of stocks ranked against their own local markets” joined together. That can of course be an extremely useful but it may not be what you are looking for.
If you are looking for the top 5% of ranked stocks ranked against the global universe then it’s better to use the ‘global’ StockRank.
It is worth noting here that some recent academic research has shown that factor investing works better when done regionally, than when done globally. So for our own investing, we are more likely to use the local or regional StockRanks even if screening globally. But each to their own of course !
A local rank does not however necessarily mean just relative to a single exchange or country. Our decision as to whether or not to group local countries together was influenced by three primary factors:
After much research we settled on the following ranking hierarchy (global, regional, and local ranking sets) across geographies:
Global (comprising 4 regions so far) Region 1: North America (2 local ranking sets)
As we add more markets to Stockopedia - both in these regions and in new regions including Africa, Middle East and South America - these sets may be liable to change.