We usually read at http://finance.yahoo.com/mrd or http://finance.yahoo.com/mru or elsewhere that stock XXXX outperforms or underperforms the market. Siligardos method [http://www.traders.com/Documentation/FEEDbk_docs/Abstracts_new/Siligardos/siligardos.html] may give a simple visual criterion to have our own estimate. If we take Value=RSI() *we will have a RErsi identical to close graph for each stock. If we replace it with Value=MeanRSI, ie the average RSI() of the market, we may easily compare how the stock performs the market. The red graph is the virtual Close, if the stock was aligned with the market. The stock outperforms the market when the black line is higher than the red and underperforms the market when the black line is below. Dimitris Tsokakis PS: *Tomasz Janeczko formula at http://www.traders.com/Documentation/FEEDbk_docs/TradersTips/TradersTips.html#amibroker2 was modified to create the attached amibroker chart For more details see http://groups.yahoo.com/group/amibroker/message/41412
For a detailed analysis, see also http://groups.yahoo.com/group/amibroker/message/41492 and make your own, objective, outperformane/underperformance estimation. It is interesting to know how ^NDX underperforms its own N100 market !!