Tag Archives: value

Recent comment in WSJ

    • Posted In Stockpickers, Rejoice! Correlations Are Falling Again

    • Your article on inter-Sector correlations sheds some light on the causes of our recent results (over 50% spread between under and over valued screens) seen here:


      To quote

      Short Term Results (16 months)

      The performance of the screens have been particularly consistent since June 2016 as the graph below shows. The Undervalued have outperformed our Universe by 31% while the Overvalued under performed by 19% for a spread of over 50% in 16 months.

      (see site for graphs)

      A simple explanation would be value vs growth but this doesn’t hold up as the underlying principal of Corequity analysis is to put a price on growth specific to each company.  This is further supported by the recent relative performance of the ETFs SPYG and SPYV, being the Spider ETFs for S&P 500 Growth and Value stocks.

      This (the graph) bears no resemblance to the UV/OV screen graph for the same period especially  if the same scale is used.