Features
Real-time
Kappa scans the market each 20 seconds and calculates stocks fundamentals in real-time.
Income statements, balance sheets and cash-flows are updated daily.
5000 stocks
More than 5000 stocks are available in Kappa from the US and other countries. Today, NYSE and NASDAQ exchanges are supported.
Global markets support is coming soon.
15 fundamentals
Kappa calculates 15 fundamentals to rate stocks.
These parameters vary from basic ones, like P/E, ROE and Net margin to advanced and complex scales, like Altman Z-score and Piotroski F-score.
Popular indexes
Exclude stocks that are out of popular index, or find stocks only from S&P 500, Dow Jones, Russell 2000, Russell 1000 or NASDAQ 100.
Built-in guide
A thorough guide is available in Kappa. Use it to learn more about investment best practice. The guide explains ranking algorithm work.
Advanced filters
Use multiple filters to fine tune. Filter stocks by market capitalization, industry, index and exchange.
Portfolio tool
Use built-in portfolio manager to track your gains from single stock or entire portfolio.
Dark mode
The dark mode is available in Kappa. The last but not the least.
Time for value stocks
Kappa helps finding most undervalued, profitable and financially strong companies in the market.
Sophisticated investing in value stocks, previously available only to large investors, is now as easy as floowing the three steps:
This is called ‘Factor investing’.
- Open ‘Best rating’ strategy
- Pick 25 to 50 stocks rated ‘Strong buy’
- Rebalance portfolio yearly
It is widely used by large asset management funds. In long-term run, this method outperforms the market and the ‘mighty’ S&P 500 index, yielding from 16% up to 22% average annual return, which is close to Warren Buffett’s results.
These yields are backed up by 50+ years of stock market statistics and backtesting, which is built into Kappa.
Beat the market
Factor investing is a method to choose stocks by multiple fundamentals associated with higher returns.
Such fundamentals as P/E, Net margin, Quick ratio, etc indicate how a company performs relatively to the market. If some fundamentals are lower and some are higher, the company, on average, performs better or worse. It is backed up statistically that buying companies with, for instance, lower P/E and higher Net margin, yields more gains in long-term run.
Kappa is based on 50+ years of backtested market statistics. It uses multi-factor strategies to find the best stocks on market and rate them with one of 5 ratings:
Statistically, only 20 percent of managed funds beat the market. The main reason is the lack of strategy.
Many investors struggle to outperform the market and try various approaches. Traditionally, investors think of the market as of the S&P 500 index. In a nutshell, the S&P 500 index is just 500 biggest US companies, weighted by market capitalization, which are reviewed every year.
The mighty S&P 500 does nothing more that making a discipline bet on large stocks. The strategy is the key. For example, filtering out overvalued companies from the S&P 500 index will a-priori bring higher returns. Another way is to filter out companies with worse profitability or financially weaker companies.
Kappa uses multi-factor model based on 15 fundamentals of valuation, profitability and financial strength to find the most profitable, financially strong and yeat undervalued stocks. The statistics shows that systematically buying such stocks and rebalance your portfolio every year (as S&P 500 does) brings much higher returns.
Strategies
Use general strategy ‘Best rating’ to find, at the same time, most undervalued, profitable and financially strong stocks. Or use one of three specific strategies to filter stocks by valuation, profitability or financial strength in particular.
Best rating
Most undervalued, profitable and financially strong stocks.
Valuation
Most undervalued stocks
- P/E Price-to-Earnings
- P/S Price-to-Sales
- P/B Price-to-Balance
- P/FCF Price-to-Free cash flow
- EV/EBITDA Enterprise value to EBITDA
Profitability
Most profitable companies
- ROE Return on Equity
- ROA Return on Assets
- ROI Return of Investments
- Operating margin
- Net margin
Financial strength
Financially strongest companies
- Quick ratio
- Current ratio
- Debt-to-equity
- Piotroski F-score
- Altman Z-score
How it works
Take all stocks in the market and write out, for instance, their P/S values. You have a set of 5000 numbers from 0.01 to 20.38. Now split this range into 10 parts of 500 numbers in each part. These parts are called deciles. The 1-st decile contains the stocks with the lowest P/S, and the 10-th decile contains the stocks with the highest P/S.
Buy stocks from the 1st decile, which contains the lowest P/S, and review your choise every year. As the 50-year statistics shows, in the long-term run this strategy will yield 16.3% average growth return. Buying stocks from the 2nd decile will yield 15.4% annually and so on. The 10th decile will yield only 11.2% annually as the worst one with highest P/S values.
Indeed, each decile has its own performance. Deciles 1 and 2 outperform the market, while deciles 8, 9 and 10 fail to.
Kappa has the similar statistics for 15 fundamentals. Therefore, a stock rated ‘Strong buy’ is a company within the first decile of all 15 fundamentals. It is the best stock from 15 points of view. That is why the strategy outperforms the market.
