Relative Strength Comparative

Type

Comparison indicator

Short introduction/statement

The Relative Strength Comparative (abbreviation "RSC") enables the direct comparison of two securities or the comparison of a security with a benchmark.

Formula/calculation

The indicator is calculated by dividing the price of one security by the price of the second (underlying). The result of the division is the ratio between the two securities.

Interpretation

A rising RSC indicates that the security under consideration is outperforming the benchmark (underlying security). A sideways movement indicates identical price developments (for example, they rise by similar percentages). A falling RSC indicates that the security under consideration is performing worse than the benchmark (underlying).

Example: RSC