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. e.g. 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