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SCTR strange behavior and lack of correlation with stock/SPX ratio in Intrepid Potash (IPI)

I recently purchased Intrepid Potash (IPI) and I noticed in the weekly chart that the SCTR has a rise of 45 degrees between June'16 and July '17, ending in a value of about +80. Also, the ratio of IPI:SPX is about -90%. In my experience, the correlation between a stock/SPX ratio is about the same as SCTR value. What is the reason for this behavior?
Changing to the daily chart of IPI, the value of the IPI:SPX ratio is about +85%, where as stated before, in the weekly chart is about -90%, diametrically opposite. Why is that?
Daily chart https://stockcharts.com/h-sc/ui?s=IPI&id=p41502953670&a=572079283&listNum=71

Weekly chart https://stockcharts.com/h-sc/ui?s=IPI&p=W&yr=5&mn=0&dy=0&id=p22264402123&a=572798702&listNum=71

Best Answers

  • markdmarkd ✭✭✭
    Accepted Answer
    Re the weekly chart, there appears to be some kind of discontinuity in SCTR calculation. Notice in the daily chart, the SCTR line does not begin at the left edge, but near the middle, in July. On the weekly chart, the 45 degree line connects that point to an earlier point in June 2016. So for some reason, it appears the SCTR was not calculated for the intervening time. Maybe it dropped out of whatever SCTR group it belongs to (say, mid cap), or maybe there is a price threshold for the SCTR calculation.

    On the Relative Price performance IPI:$SPX

    Price Performance is time sensitive. So if you have a 3 month chart and 6 month chart of the same symbol, ending on the same day, but beginning on different days, you will have different readings.
  • efaraldoefaraldo
    Accepted Answer
    Thanks Markd
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