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What is the CP Group/Sector Structure? 
The CP Group/Sector Structure is a highly correlated AIQ Group/Sector Structure containing 20 Sectors, 102 Groups and nearly 2000 U.S. Stocks. Stocks were screened for inclusion using Market Cap, Price and Industry Correlation. More than 95% of SP500 stocks and 90% of Russell 1000 stocks are included.
The CP Group/Sector Structure follows the concept pioneered by the DowJones/FTSE Industry Classification Benchmark (ICB). The ICB Industry Structure was introduced in 2005. See: http://www.icbenchmark.com/ for more details.
The ICB Industry Structure comprises four levels of classification: Industries (e.g. Consumer Goods), Supersectors (e.g. Food & Beverages), Sectors (e.g. Beverages) and Subsectors (e.g. Soft Drinks).
With the CP Group/Sector Structure, AIQ Sectors are similar to ICB Supersectors and AIQ Groups are similar to ICB Subsectors.
To see a map of the CP Group/Sector Structure structure in PDF format, click here
What's so important about correlation?
The purpose of Group/Sector analysis is to find Groups of stocks that generally move together. This can be very useful information for a trader. Industry Groups rotate in and out of favor and the "sector influence" on a stock can be strong. Recent studies show that 49% of the gains made by winning stocks can be attributed to the industry group they are part of.
Therefore by buying only strong stocks in strong sectors you are greatly increasing your odds of making a profitable trade. But it is important to make sure that only those stocks within an industry group that generally move in unison are included in a list of stocks you follow for that group.
In the CP Group/Sector Structure we achieved this by using AIQ's Matchmaker program and by making sure that uncorrelated stocks were omitted. 
It's also important to note that Groups in the CP Group/Sector Structure correlate very closely to their Sectors. 80% of the Groups have a Matchmaker correlation factor greater than 800 based on two years of data and for 96% of Groups this number is higher than 700. (2004 - 2006)
How was LISTCP created?
For each industry, supersector, sector and subsector in the ICB Structure there is a corresponding Dow Jones Index. For example, the supersector Chemicals can be tracked using the DJ U.S. Chemicals Index (DJUSCH).The CP Group/Sector Structure equivalent of this index is CHEMICALS SECTOR (CPUSCH).
Using AIQ's Matchmaker we made sure that the Groups and Sectors within the CP Group/Sector Structure correlated closely to their corresponding DJ Index. Chart 1 shows DJ U.S. Chemicals Index (DJUSCH) and CHEMICALS SECTOR (CPUSCH) from LISTCP overlayed - you can see how closely they match.
Why use a correlated AIQ Group rather than an Index?
The correlation aspect is one of the most important advantages. In AIQ Charts you can move from a stock chart to it's correlated Group chart with one click.
Much longer data history. Most DJ indices associated with the ICB structure do not have data available before 2001. Most Groups and Sectors in CP Group/Sector Structure have more than fifteen years of history.
AIQ Groups and Sectors have associated Volume figures. Dow Jones Indices do not. As an AIQ user you can display volume based indicators such as On Balance Volume, MoneyFlow and Postive Volume Index on your Industry Group charts. These indicators can aid you greatly in tracking Group rotation. check out the Computer Hardware group with accompanying volume and MoneyFlow indicators.
AIQ Groups are unweighted. Indices are often skewed in favor of one or two highly weighted stocks giving a false impression of the Group's performance.
Market Timing - Group/Analysis - Stock Selection
Every successful trader knows that top-down analysis is the smart way to Stock market profits.
Use TradingExpert Pro with the CP Group/Sector Structure and you have unmatched Group/Sector analysis at your fingertips.
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Updates to the structure are undertaken every 6 months. New update now available with 20 Sectors,
98 Groups, and more than 2000 stocks.
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Want to know how we do this? Here's the routine:
1 Historical data for each relevant Dow Jones Index was downloaded along with its constituent list of stocks.
2 Stocks were screened by Market Cap and Price. This gave us an initial list to use for each Group.
3 The constituent stocks for each index were then tested for correlation with their associated index using AIQ's MatchMaker. Stocks that did not have a Matchmaker correlation factor greater than (or very close to) 500 were ommited.
4 AIQ Groups were then created using the screened lists.
5 The Groups were individually charted and overlayed with the corresponding Dow Jones Index to visually check they matched.
6 The initial lists were then retested for correlation this time using the newly created AIQ Group. Once again, stocks that did not have a Matchmaker correlation factor greater than (or very close to) 500 were ommited.
7 The result is a highly correlated AIQ Group/Sector Structure.
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