secures Sharpe Ratio (or Efficiency) of -0.0129 which denotes DOW
had -0.0129% of return per unit of volatility over the last 1 month. Macroaxis approach towards predicting risk of any index is to look at both systematic and un-systematic factors of the business, including all available market data and technical indicators
. DOW exposes twenty-one different technical indicators
which can help you to evaluate volatility that cannot be diversified away. The organization shows Beta (market volatility) of 0.0 which denotes to the fact that the returns on MARKET and DOW are completely uncorrelated. Even though it is essential to pay attention to DOW
historical returns, it is always good to be careful when utilizing equity current trending patterns. Macroaxis approach towards predicting future performance of any index is to check both, its past performance charts as well as the business as a whole, including all available technical indicators
. DOW exposes twenty-one different technical indicators which can help you to evaluate its performance.
|15 days auto-correlation||(0.59) |
Good reverse predictability
DOW has good reverse predictability. Overlapping area represents the amount of predictability between DOW time series from June 15, 2018 to June 30, 2018 and June 30, 2018 to July 15, 2018. The more autocorrelation exist between current time interval and its lagged values, the more accurately you can make projection about the future pattern of DOW price movement. The serial correlation of -0.59 indicates that roughly 59.0% of current DOW price fluctuation can be explain by its past prices. Given that DOW has negative autocorrelation for selected time horizon, investors may consider taking a contrarian position regarding future price movement of DOW for similar time interval.
|Correlation Coefficient|| -0.59|
|Spearman Rank Test|| -0.86|
|Price Variance|| 60093.33|
|Lagged Price Variance|| 91484.83|