Jupick has two grades: a stock S and a coin S do not mean the same thing

A stock page can show an A, and so can a coin page. The letter looks the same, has the same color, and even the band boundaries are the same: for both, S is 85 points and above, A is 70 and above, B is 50 and above and C is 30 and above.

So they look like readings from a single scale. But the two scores come from different formulas, and not a single input overlaps.

This is not a design slip but an intended separation. Measuring both with one formula would mean forcing one side into a shape that does not fit. What would get forced is shown below.

A stock grade is calculated from nine metrics in three groups. Profitability, at 40%, looks at ROE, operating margin and revenue growth. Financial stability, at 35%, looks at the debt ratio, current ratio and interest coverage. Dividends, at 25%, look at dividend yield, payout ratio and consecutive dividend years.

What the nine share is that they all come from financial statements. Operating margin needs sales, ROE needs equity, and dividends need an entity that distributes profit. In other words, a stock grade is not a tool for measuring an asset's value but a tool for measuring a business's financial condition.

That is also why Jupick shows PER and PBR as metrics but leaves them out of the grade. Those two capture not the company's financial condition but the price the market puts on the company, so they are a different kind of measure from one that gauges financial strength.

Coins have no financial statements. There are no sales, no equity and no entity to pay dividends. Not one of the nine values above can be calculated. So the coin grade looks at three entirely different things.

The first is market cap, at 40%. Larger size scores higher, but the number is compressed on a log scale rather than used as is. Market caps at the top and bottom differ by tens to hundreds of times, so left as is, everything except the largest coin would sit at the floor.

The second is liquidity, at 35%. It looks at turnover: daily trading value divided by market cap. Even a large coin with little turnover is hard to trade at a desired price, so this is measured separately from size.

The third is stability, at 25%. It averages the absolute values of the 7-day and 30-day price changes and scores higher the less the coin moved.

The three values are weighted, added and put into the same band table as stocks. Only the band table is shared; the contents do not overlap.

A stock's A reads like this: financial statements existed, and the nine values drawn from them ranked high. A coin's A reads like this: it is large, actively traded, and its price range over the past month was small. The two sentences tell entirely different stories.

Reading a coin's stability score as a measure of risk is especially misleading. That value records how much the coin actually moved over the past 7 and 30 days. It is a measurement of a past period, not an assurance about future behavior. Assets that have been quiet for a long time often move sharply in a single day.

The same holds in the other direction. A high stock grade means the financial condition was good, not that the share price goes up. Share prices of financially sound companies fall all the time.

So setting a coin S beside a stock B and asking which is better is not a question these numbers can answer. A grade is a relative position within an asset class, not a ranking across asset classes.

Gold, oil, natural gas and the KRW/USD exchange rate have no grade at all. Only the price, the change from the previous day and the position relative to the 52-week high and low are shown.

The three axes used for coins cannot be carried over. Commodities trade in units that vary, troy ounces, barrels, MMBtu and pounds, so even comparing their prices directly does not work. An exchange rate is the ratio at which two currencies trade, so the idea of size does not exist.

The current policy is not to force a score onto an asset for which no measuring stick has been built yet. No grade does not mean bad; it means a formula suited to that asset class has not been set up yet. The coin grade did not exist from the start either.

Instead, these asset classes keep only the common axes that work for any asset: price change by period, position within the 52-week range, and correlation between asset classes. These three are calculated with the same meaning whatever goes in.

Asset class boundaries are not as clean as they seem. An ETF is not a business in itself, but what it holds is company stock. A REIT has the character of both real estate and a dividend stock. Many forms, such as holding companies, financial holding companies and resource developers, are hard to measure with a single yardstick.

Having a grade does not by itself mean an asset is safer. A grade first says the data needed for the calculation existed, and then says what state that data is in. Having data and the asset being safe are different matters.

Axes that cross asset classes also have a shelf life. The correlations Jupick shows are calculated from daily price changes over the most recent 90 days. A 90-day window also means relationships from more than 90 days ago have already dropped out. The number is a record of the past three months, not a declaration about the nature of the two assets.

This content is for information only and is not investment advice. Jupick gives no trading advice on any particular asset. Investment decisions and responsibility for them rest with the user.