What is a ratio symbol?

Throughout StockMarketMBA.com, we use ratios to analyze trends. In fact, we have setup in our database certain "ratio symbols" - symbols that merely contain the ratio of one security's market price to another security's market price. We have given these ratio symbols a ticker symbol in our database equal to the first security's symbol, then a ":", then the second security's symbol. For example, the ratio of the market price of EFA, the iShares MSCI EAFE ETF, to SPY, the SPDR S&P 500 ETF, has a ticker symbol of "EFA:SPY".


We believe ratio symbols are excellent for analyzing trends. For example, when trying to decide if value investing still works, you can look at the ratio of IVE, the iShares S&P 500 Value ETF, to SPY, the SPDR S&P 500 ETF:


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