Relative Returns vs. Absolute Returns
The term "relative returns" refers to returns as compared to a benchmark index. Most money managers, such as mutual funds, will aim to produce returns that beat a benchmark, e.g.
Relative Return
The return that an asset achieves over a period of time compared to a benchmark. The relative return is the difference between the absolute return achieved by the asset and the return achieved by the benchmark.
Relative Return
The annualized return on an investment in excess of the average three-month US Treasury bill yield during the same period as the investment.
But I recognize (and so do they) that to achieve the relative return they are seeking they need intense focus and research in each of these areas which costs money. It is a good and sometimes annoying business model.
com's research suggests that by constructing diversified mutual fund portfolios using sector funds, investors have the potential to outperform the market averages on the basis of relative returns as well as risk-adjusted returns.
The alternations of trend are a direct function of volatility - so we can say that the X-axis is scaled in units of risk - since volatility is often thought of as a proxy for risk. The Y-axis is scaled in units of relative return.
explain persistent returns, the only theory that makes sense to these savants is that that there's some risk factor that is like the stock market but actually inversely correlated with it (and thus, positively correlated with the relative returns of ...
As applied to two portfolios, a high correlation coefficient for the relative returns indicates that the portfolio values have moved in tandem and a low correlation coefficient means the opposite.
Windowing: returns of equities (and relative returns) vary greatly depending on which points are included.
 See also: Return, Stock, Market, Index, Investment
  
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