Meaning RELATIVE STRENGTH: Movement of a stock price over the past year as compared to a market index (like the S;P 500). A value below 1.0 means the stock shows relative weakness in price movement (underperformed the market); a value above 1.0 means the stock shows relative strength over the one-year period. Equation for Relative Strength: [current stock price/year-ago stock price] divided by [current S;P 500/year-ago S;P 500]. Note this can be a misleading indicator of performance because it does not take risk into account
More terms such as Relative strength in Dictionary R.
- Definition Regression Toward The Mean:
- Examples The tendency that a random variable will ultimately have a value closer to its mean value relative strength definition.
- Definition Rule 144:
- Examples Restricts solicitation of buyers to complete the sell order of an insider (unless the firm is already a buyer); signified by a flashing E on Quotron relative strength explain.
- Definition Resistance Level:
- Examples which it is supposedly difficult for a security or market to rise. Price ceiling at which technical analysts note persistent selling of a commodity or security. Antithesis of support level relative strength what is.
- Definition Real Estate Investment Trust (REIT):
- Examples REITs invest in real estate or loans secured by real estate and issue shares in such investments. A REIT is similar to a closed-end mutual fund relative strength meaning.
- Definition Reserve Ratios:
- Examples Specified percentages of deposits, established by the Federal Reserve Board, that banks must keep in a noninterest-bearing account at one of the twelve Federal Reserve Banks relative strength abbreviation.