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by trade data 1. Gather the necessary data. Calculating the ratio of two entities requires two sets of data. This data should generally be of the same nature, such as stock prices or currency exchange rates. 2. Calculate the division. Divide the value associated with the first entity by that of the second entity. For example, if the first entity is the US Dollar and the second is the British Pound, divide the US Dollar exchange rate by the British Pound exchange rate to calculate the ratio. 3. Analyze the results. Determine whether the ratio is favorable or unfavorable to either of the entities. If the ratio is high, the first entity is strong relative to the second entity. If the ratio is low, the first entity is weak relative to the second entity.
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