K Score - Germany - All Sectors

Performance Showcase

To test the performance of the K Score, we constructed two portfolios – Top Picks and Bottom Picks. The Top Picks portfolio is comprised of the largest 30 German stocks by market cap that are assigned with a K Score of 9, while the Bottom Picks portfolio have stocks in K Score of 1.

Cumulative Return of Portfolios (2013-01-02 to 2019-10-01)

Statistics CAGR Alpha Volatility Beta Sharpe
Top Picks 12.32% 7.08% 13.44% 0.72 0.93
Top 30 German Stocks by Market Cap 7.98% 0.00% 14.81% 1.00 0.59
Bottom Picks 7.86% 2.14% 16.47% 0.89 0.54

Overview

K Score is a predictive equity rating powered by machine learning (ML) technologies. Kavout takes in vast and diverse datasets including fundamentals, pricing, technical indicators, and alternative data, and then uses a combination of statistical analysis and ML techniques with ranking algorithms to deliver an actionable equity rating score with values ranging from 1-to-9.

A higher K Score (7-9) assigned to a stock indicates a higher probability of outperformance, whereas a lower K Score (1-3) indicates a lower probability of outperformance in the next month.

Data Highlights

  1. For quantitative users, overlay K Score as a signal in investment models.
  2. Generate new equity long/short ideas that weren't on your radar before, or validate research as a screening parameter.
  3. Mitigate risk in portfolio construction by avoiding stocks with low K scores (1-3).