MarketScalpel's research services are based on proprietary, value-added sector data generated by our innovative and proprietary sector database and analytics framework.
This delivers comprehensive primary sector data compiled on a bottom-up basis from a total universe comprising stocks listed on the three main US exchanges.
We currently track approximately 3,700 active, individual stocks, comprising the sector universe. Of these approximately 3,100 are US companies, and the balance Non-US domiciled companies maintaining either a primary or secondary US listing.
Stocks are selected for inclusion in the sector database on the basis of a market cap and liquidity screen, with the list of constituents reviewed and updated quarterly.
Our universe includes common stocks (or similar such as ADRs) only, and does not incorporate preference shares, structured products or other quasi-equity instruments such as warrants.
This is critical for the high quality of our sector internals data, which reflects solely sentiment towards equities, in contrast to, for example, NYSE exchange-wide data, that includes a high proportion of components correlated with fixed income and non-equity related factors.
The MarketScalpel database maps the stocks universe to a 5 tier hierarchical sector structure, comprising a total of 153 industry groups organized under the 10 standard top level sectors. The structure is best illustrated by drilling down into the sector nodes on the demo of our Market Navigator online research platform (uses stale data).
The sector structure incorporates lessons from existing index providers. It most closely resembles the Dow Jones approach, where industries are grouped vertically; in other words for example producers and distributors will appear in the same sector.
Although this differs from, for example, Bloomberg's more narrow approach, we believe it not only reflects the modern business climate, where supply chain management improvements have eliminated most of the cyclical lag present in vertical industries in the past, but also allows the assessment of investor sentiment towards industries and sectors defined in the broadest possible sense.
The sector structure is replicated across regional lines. In this way
we produce three separate sector datasets; US Domiciled Companies, Non-US Domiciled and
All Domiciles (global sectors) for a total of more than 450 discrete sectors, for which daily time series
data are extracted typically starting from 1995.