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Clarification of the SCTRs " Peer Group "

edited November 2016 in Trading Strategies

I'm looking for clarification of the SCTRs " Peer Group ".

All the literature that I have come across mentions that the SCTR is the measure of a stock relative to its' "Peer Group" and that you can choose a Universe of stocks, e.g. Large Caps, Mid Caps, etc.

Is the SCTR measured only within and relative to the Universe of Stocks that you choose, i.e. Large Caps, Mid Caps, etc.?

Or is a stock's "Peer Group" that it is measured by, the Index, the Sector or the Industry that it is within?

Comments

  • markdmarkd ✭✭✭
    edited November 2016
    As I understand it, the stocks within a category - large cap, mid cap, small cap, etf, etc. are measured against each other. A stock in the large cap group is measured against all other stocks in the large cap group only, and regardless of sector, industry, or index membership.

    If you want to see the membership of a peer group, select a category from the drop down at the top of the SCTR Reports page, and select "All" from the "Entries" drop down to the left. Use the various column headings to sort the results.

    If you want to measure a stock against its specific sector, industry or index, you could use the Price Performance indicator with the stock symbol and another symbol representing the sector, industry or index. For instance, IBM is a computer services industry stock in the technology sector, and it's a member of the SP500, so you could use either IBM:$DJUSDV or IBM:XLK or IBM:$SPX (or all three). If the Price Performance line is generally rising, IBM is outperforming the other symbol.
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