Relative Strength 1-year


Relative strength is a momentum investing technique that compares the performance of a company’s stock to those of its benchmark companies. Investors can identify the strongest performers compared to the overall market, creating recommendations for investments. Whenever it is used as a part of investment strategy, relative strength assumes that when a stock’s price has been rising, it will continue to rise.

Relative strength investing has both an entry and exit strategy; investors using this technique aim to buy securities exhibiting signs of strength while selling their holdings as soon as the associated securities begin to appear weak. A simple investing technique in its own right, relative strength can also be applied to more complex strategies, such as pairs trading. In this, the equities performance is compared with sector indices while sector indices are compared with the market index. 

Calculated on the basis of the past 1-year’s performance.