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SmartSectorSkor (Sectors)

What is SmartSectorSkor?

It is SmartSkor extended to the sector level. The SmartSkor values of every stock in a sector are weighted by each stock's BIST market capitalization and averaged to produce the sector's score. The same method is applied separately for each of the six factor scores. Stock-level SmartSkor, fund-level SmartFonSkor, sector-level SmartSectorSkor — the three are layers of the same analytical foundation.

Why market-cap weighting?

Economic importance at the sector level scales with market capitalization. With equal weighting, small companies could dominate a sector's score — for instance, in the Financial sector, the high score of a small leasing company could drown out the signal from the banking giants. Market-cap weighting prevents that distortion and reflects the economic reality of the sector.

What is the score scale?

SmartSectorSkor is a decimal value between 1 and 10 — for example, 5.74 or 7.2. As with SmartFonSkor, we do not round the continuous score to integers; the reason is to keep the nuances between sectors with closely-spaced scores visible.

How often is it updated?

Since each stock's SmartSkor is updated daily, SmartSectorSkor is recalculated daily as well. Changes in stock scores and the day-to-day movements in market capitalizations are reflected in the sectoral score in near real-time.

How many sectors are there?

25 sectors. This list is deliberately differentiated from BIST's official three-way classification (Financial / Industrial / Services) and from BIST's sub-sector indices. When an investor asks "How are airline stocks doing?", they should see "Airlines" directly, not have to dig under "Services." Sector assignments are determined by TuneUp; the same company may sit in different sectors under different classification schemes.

Does a high SmartSectorSkor mean every stock in the sector is highly scored?

No. The sector score is an average; individual stock scores within the sector can span a wide range. The sector score points the investor toward a starting place; stock selection should always be made on the basis of the individual SmartSkor.

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