Relative Rotation Graphs - Lite
A Relative Rotation Graph (RRG®), developed by Julius de Kempenaer after many years of research, is a complete top-down analysis technique. RRG® will help you look at the relative performance of a security, index or even an Asset Class and determine how it is performing relative to the benchmark.
RRG charts in Optuma allow you to move back and forth through history, seeing not only where a security is today, but where it has come from and what it has done in the past.
The RRG chart plots a list of selected securities on a chart that is broken into four quadrants (Improving, Leading, Weakening, and Lagging).
Until now the RRG module has been tailored to Professional Services clients using a Bloomberg datafeed, however, a Lite version, tailored for clients is now available as an optional subscription addon.
RRG Lite Features
- Basic RRG- Static
- Basic RRG - Motion
- Tails on/off
- Set Tail - Length
- Toggle Securities on/off
- Pre-set universes
- Customised universes
- Fixed Annual Growth Benchmarks
- Time frames: Daily, Weekly, Monthly
- RRG Lines tool
Note: Support for Intraday data, RRG-FX, and other advanced features can only be accessed in the RRG Professional version.
This video is a from a webinar held by Mathew Verdouw, CMT, CFTe, in which he goes over the theory and creation of the RRG before covering how we can monitor a portfolio using RRGs and how to perform RRG-based stock selection.
Optuma 101 Course
This video is pulled from the Optuma 101 course that you can access access here. This course takes you through the basics of Optuma and helps you get up and running and using Optuma to its full potential. In this video, Darren Hawkins, MSTA, takes you through the how to open and use the RRG chart in Optuma.
Creating an RRG
There are several ways to create an RRG:
1. To manually create an RRG click on New > Multi-Code Chart and select the codes and click the RRG button.
2. From the right-click menu in the Security Selection window. For example, right-click on the ASX Top 200, and Open RRG from the Open Folder As option:
3. From a Symbol List:
The RRG chart includes a data alert, which will display if the comparison code, or the codes in the RRG chart are more than 5 days out of sync (which is an indication of a possible issue in the automatic data updates, loss of connection to a real-time provider, etc).
When the alert appears you can click the Fix button to try and resolve the issue. If you are using Optuma EOD data you may want to try running through Option 1 listed on the following article:
Fixing Data Gaps
Actions & Properties
Clone Chart: When selected, an exact replica of the existing RRG chart will be created.
Print Chart: Opens the page in a PDF document, which can then be printed.
Reset Scales: When selected, the RRG chart will reset the zoom level and scaling to its default levels. Pressing Esc on your keyboard will have the same effect. To zoom in or out of the RRG chart, use the scroll wheel of your mouse. You can adjust the X or Y scale only by hovering the mouse over the scale and using the scroll wheel of your mouse.
Restore Default Settings: Click this action if you have adjusted the default settings of the RRG, and wish to return to the standard properties originally installed with Optuma.
Save Settings as Default: If you have adjusted any of the RRG properties, you can save the adjustments as your new default setting. Each time you open a new RRG it will display using the new settings.
Send To: This option allows the current chart to be saved as either an image file or saved to the clipboard. If you have Professional Services then the additional options of sending the chart via Chat Message, to Word and Outlook are also available.
Open List As: For all the securities that are included in the RRG, the following can be created: Charts, Scatter Plot Chart, Sector Map, Watchlist, Watch Tiles, Relative Comparison Chart, Spread Chart.
Comparison Index: To set or change the comparison index left click on the existing code and the security selection window will be displayed.
Grid View: Click this option to switch from a top-down chart view to a Watchlist style Grid view.
Sensitivity: Adjusts the sensitivity of the RRG line calculation (lower values = fast, higher values = slow).
Hint Labels: Displays the list of Hint labels that can be selected. The hint labels are displayed as you roll your mouse over the different securities on the RRG chart.
Date Range: Sets the date range covered by the RRG (accessed via the History slider).
Tail Styles: This menu expands to display the properties for the RRG tails.
- Shows Tails - When deselected, only a dot point will be displayed for the current value, omitting the tail view from the chart.
- Tail Length - Can increase or decrease the number of days in view on the RRG chart.
- Line Width - Adjusts the width of tail. Moving the slider bar to the right will increase the thickness.
- Smooth Tails - When selected, the tail image is smoothed removing any angles.
Display: This menu expands to provide the display options for the RRG. It controls the settings for the RRG grid, background colours, background transparency, scales and black and white printing.
Show Values: Displays a table to the right of the Scatter Plot Chart that will list each security with the current values.
Labels: Alters the labels that are displayed on the RRG chart. Can be set to Code, Name, Name and Code, or no label at all.
Label Colour Style: The labels can be set to use either a single colour for all labels or to use the same colour as the tail.
Label Font Size: Adjusts the size of the label, moving the slider bar to the right will increase the font size.
Scales Font Size: Adjusts the size of the scales, moving the slider bar to the right will increase the font size.
Date Control Link: If a price chart for an RRG security is tiled alongside the RRG, selecting this option will display a vertical date line on the price chart. The date line can then be repositioned and the RRG will automatically correspond to the selected date position.
Linked to List: The RRG chart can be linked to either a scan, CSV list or fund.
RRG Tool Module
The RRG module also includes the RRG Lines tool, for further information please click here.