For each of the six size categorizations, I consider three portfolios dimensioned on the value-balance-growth continuum, making for a total of 18 tracked indexes in all. The dashboard monitors day-to-day performance of each in 2016, assuming all started January 1 with $1. The challenge was to showcase the data in such a way that’d make them all comprehensible in a single illustration.
Making sense of 18 graph traces in one dashboard is a daunting challenge. Thankfully, there are ways of organizing the plots into groupings/orderings that ease the cognitive burden.
The first “method” is using colors to denote the value-balance-growth dimension, identical shades indicating value, balance, and growth across the six size categories. The second is deploying a trellis or small multiple design with a distinct panel for each size. The power of trellis is that each panel has identical axes to facilitate between-panel comparisons. A third cognitive consideration is ordering, with portfolios comprised of companies of decreasing size proceeding from left to write, top to bottom. Finally, a horizontal reference line at $1 on each panel indicates starkly which portfolios are making and losing money.
Consider the graph above. The indexes are now starting to inch up after two days of precipitous Brexit decline, though you’d be better off on the sidelines for the most part this year. Note the wider separation on the value-growth axis of portfolios comprised of smaller companies. Midcap seems best on the size axis at this point, while for all sizes, value trumps growth.
Hopefully, the market will soon recover from the Brexit.