Relative strength calculations
Relative Strength measures a stock's price change over the last X months relative to the price change of a market index. It shows the relative outperformance or underperformance of the stock over that timeframe.
We calculate this value internally. It is calculated dividing the price change of a stock by the price change of the index for the same time period. For example:
A stock falling by 20% versus an index rising 20% would lead to a Relative strength calculation of: 100 * ( 80/120 - 1) = -33%
For relative strength calculations, the benchmark index we use is the main index of the particular country or region as follows:
- USA - S&P500 Index
- Canada - Toronto Stock Exchange 300 Composite Index
- Europe - FTSEurofirst 300 Index
- UK - FTSE All Share Index
- Japan - Nikkei 225 Index
- Developed Asia-ex Japan - FTSE Developed Asia Pacific Index
- India - S&P BSE 100 Index
- Australia/New Zealand - ASX All Ordinaries Index
For any regions not covered above, we use the fallback index, which is the FTSE Global All Cap Index
