What is segmentation by value?
Segmentation by value is a decile analysis ranking the data points by the percentage their value constitutes for the sum of the whole. Each decile will compose 10% of the value of the sum of all values in the data set. The data points are sorted by value descending, then put into a decile bucket that represents their significance to the sum of all values. Example: Data: stock, value, running total, % of total, decile a 21 21 9% 1 b 20 41 18% 2 c 19 60 26% 3 d 18 78 34% 4 e 17 95 41% 5 f 16 111 48% 5 g 15 126 55% 6 h 14 140 61% 7 i 13 153 66% 7 j 12 165 71% 8 k 11 176 76% 8 l 10 186 81% 9 m 9 195 84% 9 n 8 203 88% 9 o 7 210 91% 10 p 6 216 94% 10 q 5 221 96% 10 r 4 225 97% 10 s 3 228 99% 10 t 2 230 100% 10 u 1 231 100% 10 In the example above you can see that the first 11 stocks comprise 80% of the total value for all of the listed stocks. While the last 10 stocks comprise only 20% of the the total of the sum.
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