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return of a stock versus market index and sector
With this tool, traders can:
1. Compare the return of a stock versus the stock market index.
2. Compare the return of a stock versus different industrial sectors.
3. Compare the returns of different sectors.
This tool is FREE and easy to use. Stock prices are required. The tool only works with CFD-Forex accounts. These accounts have free stock market quotes. The returns of the 8 industrial sectors are calculated based on US stocks.
The sector with the best return
The trader can compare the returns of 8 key sectors (Petroleum & Gas, Metals & Mines, Regional Banks, Construction, Retail, Biotech, Pharma and Technology). The maximum horizon is 6.5 years.
This example shows the returns of 6 sectors over a two-year horizon. Over this horizon, Petroleum & Gas Exploration is the sector with the best return at +111.66%. The Biotech sector is the weakest sector with a return of -47.04%.
A stock's return versus the stock market index and sector
Each stock can be compared to the stock market index and to one or more sectors.
This example compares the return of Amazon.com stock with the S&P 500 stock market index and the 8 sectors over a 2,5-year period.
This example compares the return of Walmart stock with the return of the S&P 500 stock market index and the return of the retail sector over a 6,5-year period. Walmart stock outperforms the index and the sector.
How to practically compare returns
- Open the chart of the stock you wish to trade. Tip: you can also connect the chart to your quotes board and then click on the shares in your quotes board.
- In the WHS Proposals folder, select 'Relative performance' in the tools section.