When you hit RRG<GO> on your Bloomberg terminal it will open up with an RRG showing equity sectors depending on the location of your terminal. A US based terminal for example will fill the Relative Rotation Graph with the ten economic sectors as defined by GICS (Global Industry Classification System). See figure 1.
In the top of the screen you will find a number of amber boxes that allow you to change the setup of your RRG. See figure 2.
The default for the SOURCE box is "Regions" and as said it will fill the RRG with the sectors of an equity index most appropriate to the region where your terminal is located.
If you leave the source (Regions) and country (Americas) untouched and click the drop-down arrow next to the Index box you will see which options are available to populate your RRG. Select the index of your choice, for example the S&P 400 midcap index, and hit GO. The plot will fill itself with the 10 group indices based on the S&P 400 Midcap index. Please note that the BASE will automatically change to the selected index to be the benchmark/base for this RRG. See figure 3.
This will enable you to analyze the relative performance of the sectors making up the S&P-400 MC against the S&P 400 midcap index.
If you would like to analyze the midcap sector behaviour against another index, for example the S&P-500 index, simply change the ticker symbol inside the BASE field to that index.
To change the region click the drop-down arrow next to the COUNTRY box, if you set that to EMEA for example you will see that the list of choices in the INDEX box will change accordingly. Again select an index, for example SXXP, hit GO and the RRG will populate with the 19 sectors that make up the SXXP (STOXX 600) index. See figure 4 & 5.
RRG discussion and support forum
This forum is dedicated to Relative Rotation Graphs and is your resource for all your questions, suggestions and feedback. We love to hear from you. The forum has several sub-categories. The FAQ is a closed forum where you can read answers to some most Frequently Asked Questions on RRG. RRG General is the area where you can post and get answers with regard to general RRQ questions or issues. RRG on partner systems is where you will find and can ask any questions specifically geared towards the implementations of RRG by our partners
- Julius de Kempenaer
- Tuesday, 21 January 2014