The 1 Week Relative Strength measures a stock's price change over the last week relative to the price change of a market index. It shows the relative outperformance or underperformance of the stock in that timeframe.
Research indicates that relative strength is a negative signal in the near-term but generally a positive indicator in the medium (6-24 months).
A study by Hancock found that a momentum-based strategy outperformed a broad universe of U.S.stocks by nearly 4% per year from 1927-2009.
Research has shown that momentum is particularly beneficial when combined with a value style because the two are negatively correlated.
Moskowitz and Grinblatt conclude that "A value-momentum combination mitigates the extreme negative return episodes a value investor will face (e.g. the tech boom of the late 1990s and early 2000 or a dismal year like 2008) "However, momentum-based strategies have been shown to suffer badly during times of extreme market volatility such as the 2008/09 crisis.
For detail on what we use as the relevant market index for a given geography.
| Ticker | Name | Rel Strength | StockRank™ |
|---|---|---|---|
| LON:OBD | Oxford Biodynamics | 124% | 3 |
| LON:GCM | GCM Resources | 69.4% | 35 |
| LON:INDI | Indus Gas | 35.9% | 79 |
| LON:SVNS | Solvonis Therapeutics | 32.3% | 24 |
| LON:PRD | Predator Oil & Gas Holdings | 31.8% | 5 |