Relative allocation between assets is a very important part of portfolio analysis. On seeing the relative charts of one assets vs the other, we get very important macro trends. See the chart below of stocks vs gold:

The period from 2003-2011 was a super phase for Gold and the ratio chart shows that as the line was trending downwards. The MACD was also below 0. After 2013 we had a MACD 0 line crossover and it showed a period of outstanding performance of Equities vs Gold.
After 2018 Equities had a tough phase vs gold and MACD went below 0. Now there has been a breakout from the channel and also MACD crossover. There is a high probability that we are entering a phase where Equity outperforms Gold for a long period of time. We will track this ratio chart to keep us on track.