Relative Strength

The 3 Year Relative Strength measures a stock's price change over the last 3 years relative to the price change of a market index. It shows the relative outperformance or underperformance of the stock in that timeframe.

Stockopedia explains Rel Strength

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.

Ranks: High to LowUnit: %Available in screenerAvailable as Table Column

The 5 highest Rel Strength Stocks in the Market

TickerNameRel StrengthStockRank™
LON:YU.Yu552%93
LON:MSIMS International358%80
LON:GMSGulf Marine Services350%97
LON:W7LWarpaint London319%81
LON:FTCFiltronic307%51