Google Finance: A Look at RSRS

Google Finance offers a comprehensive suite of tools for tracking market data, managing investments, and staying informed about the global economy. While it doesn’t offer a specific, pre-calculated metric called “RSRS” (Relative Strength Rating System) directly, users can leverage its features to perform similar relative strength analysis. Understanding relative strength is crucial for identifying assets that are outperforming their peers or a specific benchmark, and Google Finance provides the data necessary to do so.

Understanding Relative Strength

Relative strength analysis compares the performance of one asset (like a stock) against another asset, index, or sector. The goal is to identify investments that are exhibiting stronger price momentum and potentially better future returns compared to others. A high relative strength indicates the asset is outperforming, while a low relative strength suggests underperformance.

How to Approximate RSRS Using Google Finance

Although Google Finance doesn’t have a built-in RSRS calculator, you can achieve a similar result by following these steps:

1. Gather Price Data: Use the Google Finance search bar to find the historical price data for the asset you’re analyzing. You can specify the time period (e.g., 1 year, 6 months) using the date range selector on the chart.
2. Identify a Benchmark: Select a suitable benchmark for comparison. This could be a market index like the S&P 500 (SPX), a sector ETF (e.g., XLK for technology), or a comparable company. Obtain its historical price data from Google Finance as well.
3. Calculate Percentage Changes: Determine the percentage price change for both the asset and the benchmark over the selected time period. You can export the historical data to Google Sheets using the download icon, then use formulas to calculate the percentage changes. For example: `=(Ending Price – Starting Price) / Starting Price`
4. Compare Performance: Subtract the percentage change of the benchmark from the percentage change of the asset. A positive result indicates the asset is outperforming the benchmark.
5. Track Performance Over Time: To create a dynamic “RSRS” equivalent, repeat the above steps for different time periods (e.g., weekly or monthly) and track the difference in percentage changes over time. This will show you how the asset’s relative strength is trending.

Additional Tools and Tips on Google Finance

• Compare Feature: Use the “Compare” feature to overlay the performance of multiple assets on the same chart. While it doesn’t provide numerical relative strength values, it offers a visual representation of comparative performance.
• News and Analysis: Stay updated on news articles and financial analysis related to the assets you’re tracking. This can help you understand the fundamental factors driving relative strength.
• Market Summaries: Monitor broad market indices and sector performance to identify overall trends and potential opportunities.

Limitations

It’s important to remember that this is an approximation. Google Finance is primarily a data provider and news aggregator. It lacks the advanced analytical capabilities of dedicated charting platforms or financial analysis software. The method described above requires manual calculations and analysis. However, by utilizing the readily available data and tools within Google Finance, users can gain valuable insights into relative strength and make more informed investment decisions.