HomeDefinitionsCompareDebt Relative valueThe financial definition for Relative value:The attractiveness measured in terms of risk, liquidity, and return of one instrument relative to another, or, for a given instrument, of one maturity relative to another. Similar MatchesRelative form of purchasing power parityRelative form of purchasing power parityTheory that the rate of change in the prices of products should be somewhat similar, but not absolutely the same when measured in a common currency, as long as transportation costs and trade barriers are unchanged. Relative strengthRelative strengthMovement of a stock price over the past year as compared to a market index (like the S&P 500). A value below 1.0 means the stock shows relative weakness in price movement (underperformed the market); a value above 1.0 means the stock shows relative strength over the one-year period. Equation for Relative Strength: [current stock price/year-ago stock price] divided by [current S&P 500/year-ago S&P 500]. Note this can be a misleading indicator of performance because it does not take risk into account. Relative yield spreadRelative yield spreadThe ratio of the yield spread to the yield level. Used for bonds. Click to compare definitions of Relative value Click to view definitions beginning re |