The Price Relative indicator compares the performance of one security to another. This indicator can be used to compare the performance of a stock against a benchmark index, such as the S&P 500, or its sector/industry group. This makes it possible to determine if a stock is leading or lagging its peers.
The Price Relative is used to gauge relative strength, which is important when it comes to stock selection. Many portfolio managers compare their performance to a benchmark, such as the S&P 500. Their goal is to outperform that benchmark. In order to achieve this goal, managers often look for stocks that are showing relative strength. Enter the Price Relative. The Price Relative rises when a stock shows relative strength and is outperforming its benchmark. Conversely, the Price Relative falls when a stock shows relative weakness and is underperforming its benchmark.
Thanks, it is great. Do you know why is not showing the value if I change the input symbol?
cwood119
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@leonardoabad, Hey thanks. What value are you referring to?
leonardoabad
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@cwood119, The PR value. It´s showing only 0,0 when I tested with the IBOV input symbol
cwood119
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@leonardoabad, It only shows 2 decimals on the plot, so any base symbol priced under 1,000 will plot as 0.00 when comparing to IBOV. You can test manually by dividing the most recent close price of your base symbol by the most recent IBOV close. Also, try this: right-click in the price-axis area of the PR plot (the area on the right with all the 0.00s) and select Indexed to 100.