When you bring up a Relative Rotation Graph with a lot of securities, say the S&P 100, at first the chart may look like spaghetti.... (see attached chart 1)
One of the first things you may want to do to make the chart more 'readable' is to switch of the trails. In Market Analyst software you can control the trails in the properties pane on the left of the chart. On a Bloomberg terminal it is an amer check box in the top right of your screen. Once you have done that you will notice that the RRG has become a lot clearer (see attached chart 2).
As a rule of thumb you can say that the cluttered securities around the middle (=benchmark) of the plot are not worth exploring as they are moving, more or less, in line with the benchmark. The more interesting securities are found on the edges of the plot making the bigger rotations.
Both RRG<GO> on Bloomberg and the RRG-toolbox on MA offer the opportunity to toggle the trails on or off so you can quickly identify the securities that you may want to do a further analysis on. In Market Analyst you hover your mouse over the security and Left-Control click to switch the trail on or off. On a Bloomberg terminal hover your mouse and Left-Click to toggle the trail on or off (see attached chart 3 for some examples).
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
- RRG FAQ
- Tuesday, 12 November 2013