Industry Groups vs $DJUSxx industry members

lmkwin

Just some information

The Industry groups on StockCharts as viewed via the Sector Summary drill downs are different than the members of the Dow Jones Industry classifications. StockCharts uses their data providers classification/grouping for industry/sector, but they use the Dow Jones data for the Charts of the industry groups.

Example, is one that has been ticking on my nerves for a bit. $DJUSAL is the Dow Jones Aluminum index. I often wondered why it had, essentially, the same performance characteristics as AA (Alcoa). Put the two symbols on a perf chart and they run together. Slap them on an RRG chart, the same.

Using the Sector Summary for Materials> Aluminum, you get 8 names. Of these 8 names only 2 are in the Dow Jones Index. In fact, only 2 names make up the $DJUSAL. AA and KALU. DJ Indexes are cap weighted, so AA accounts for approximately 95% of the $DJUSAL performance.

So, if you have a chartlist of the $DJUSxx to run scans against, it's just something to be aware of.

StockCharts also uses the $DJUSxx when using the $Industry option in PctRelative and Price/Price Performance indicator on a chart. If you run a scan and select an industry group(s), these use the StockCharts data providers classification for selection.

azb

There is no easy way to take a Sector Summary - Industry Summary detail list and make it a chartlist that we can see in Summary or Candleglance mode ... without HAND TYPING all those symbols. ... Do you agree ???

markd

On the scan workbench, you can click on the drop down for Sectors and Industries, select the sector or industry you want and click "Add".

That will add a line to the scan window "and [group is..]" whatever you selected.

Then, delete the default line for universe and add in your own. Market cap, average volume, exchanges - whatever describes the kind of issues you are interested in. Then run the scan - save it to a list. I have one for every industry and renew them from time to time.

A couple of notes:

Not every symbol in the database is assigned to a sector or industry - obviously not indexes, etfs, etc. but also some companies, usually new listings or very small caps. Also foreign owned companies that mostly do business outside the US (ADRs) may not be assigned to a sector or industry.

Also, some symbols may not be classified as you might expect, and from time to time some are misclassified. Where companies are in multiple businesses, classification seems to be based on which business contributes the most to earnings. From time to time I have asked Support to re-classify some symbols. Sometimes - most of the time - they agree with me. Sometimes they don't, and they may be right. I don't want to go deep into fundamentals, so I let it go.

lmkwin

No easy way.... easy is a relative term. If you really want one for industries, then the link below gives you the symbols. You'd want to highlight the page, copy to excel, then go to the next page and copy that to the excel, and so on.

At the end, you should be able to copy the symbols from the excel sheet into a chartlist, either by using the "Many" in Chartlist Edit, or by setting the excel sheet to being a csv for import. Another option at the end of this post.

https://school.stockcharts.com/doku.php?id=index_symbols:dj_us_indices

You could play with the search term in the search to see if you can come up with an acceptable sector listing.

To add on to @markd comments, some symbols do not have a SCTR rank or are misclassified in whether they are SCTR.large, .mid, or .small. Be aware of that if using it in a Rank By or filter.

In researching this, I note that there is a SCTR.Industry in the Price,Volume&SCTRs dropdown. Another way to get a listing is to use the scan filter [SCTR.industry > -1] as the only line of a scan. I have no idea if the listing returned is complete, but it's over 100 results so I'd think it should be. You can save those results to a chartlist.

azb

OK - Thanks ... Good ideas.

lmkwin

@Julius_RRG just did an analysis of $DJUSAL on his blog and was concerned about this industry group chart. It's the AA chart, disguised as $DJUSAL. You can easily see this by using a Perf Chart and putting AA and $DJUSAL on there. Or, an RRG chart and There are more Aluminum stocks in the StockCharts Aluminum Industry listing, but most are not included in the $DJUSAL. Only 2 are.

It is probably similar in other $DJUSxx industry groups. Only the largest cap name(s) are included





The $DJUSxx charts represent the biggest names, weighted by the biggest name.

markd

I believe DJUS memberships are subsets of membership in the SP indexes, 500 400 or 600. I believe those indexes include only US based companies. Only AA and KALU meet those criteria. Century (CENX) is US based, but not in any index. The others are based in France, China, Australia. Country of origin is included in the symbol summary (bottom of chart work bench page link). Index membership, if any, (and country) is on finviz.

lmkwin

CENX is in the 600 for a while. My point is that you may need to be aware that you may not be getting what you think you are getting from the Industry vs the $DJUSxx.

Although you can't use the $DJUSxx in a scan, except in conjunction with a $DJUSxx chartlist scan, they do use the charts for the $DJUSxx in the industry summary page.

[Group is Aluminum] is looking at more than $DJUSAL encompasses. In Industry summary you can't get a chart of Aluminum group but they show a chart of $DJUSAL, even though they list symbols that are IN the Aluminum group, but not considered for the chart they show as representative of the group.

$DJUSAL is an outlier I'm sure (only 2 names in and 1 is 95% of the value) , but I've seen a few bloggers post analysis of the "group" using that chart symbol. That chart symbol is basically 1 name, not the group/industry.

markd

Since the indexes are cap weighted, the population of the index if included in the index calculation would alter the index values significantly only if the remaining (non-index) members' combined market caps are a reasonable fraction (or multiple) of the market cap leader. In aluminum, only ACH is larger than AA, and the others combined are a bit more than a third the market cap of AA (according to finviz). So the absence of ACH would affect the plot of $DJUSAL if it fit $DJUS index criteria.

ACH, KALU and CSTM show some signs of bottoming (not make new lows recently) while AA and CENX make new lows.

On a 3-month daily chart, the RS plot (abc:$DJUSAL, which as you say is really abc:AA) for ACH, KALU and CSTM show rising RS, while CENX shows falling RS, which is accurate. The AA:$DJUSAL RS plot (which is weird - broken horizontal straight lines - compared to the others, which look normal - wavy curving lines) is also rising, which implies AA is doing better than itself, which cannot be so. But otherwise, the RS plots seem to be usable.

lmkwin

It's 95% AA and 5% KALU vs $DJUSAL. None of the others are considered. I'm sure that there are other $DJUSxx that have limited group representation but I haven't looked at it seriously to find other examples. $DJUSAL jumped off the page for me when I was reading the blog posts "analyzing" that chart over the past year or so.

Limitations and idiosyncrasies are just something to keep in mind.

Sort of like using SCTR rating. Several caveats on those including the segmentation of large, mid, and small.