DOW Correlations

DJI
 Index
  

 34,347  152.97  0.45%   

The correlation of DOW is a statistical measure of how it moves in relation to other equities. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as DOW moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if DOW moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Check out Your Current Watchlist.
The ability to find closely correlated positions to DOW could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace DOW when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back DOW - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling DOW to buy it.

Moving together with DOW

+0.95BRK-ABerkshire HathawayPairCorr
+0.782881FUBON FINANCIAL HLDGPairCorr
+0.78XOMExxon Mobil CorpPairCorr
+0.85NYANYSEPairCorr
+0.78GSPCSP 500 TrendingPairCorr
+0.76RUIRussell 1000PairCorr
+0.86WMTWalmart TrendingPairCorr
+0.78AGLEAeglea BiotheraPairCorr
+0.84UMCUnited Microelectronics Potential GrowthPairCorr

Moving against DOW

-0.58EOUKFTSE EnvironmentalPairCorr

Related Correlations

Click cells to compare fundamentals   Check Volatility   Backtest Portfolio

Correlation Matchups

The Correlation Coefficient is a useful tool to identify correlated or non-correlated securities, which is essential in developing a diversified portfolio. It tells us the relationship between two positions you have in your portfolio or considering acquiring. Over a given time period, the two securities movetogether when the Correlation Coefficient is positive. Conversely, the two assets move in opposite directions when the Correlation Coefficient is negative. Determining your positions' relationship to each other is valuable for analyzing and projecting your portfolio's future expected return and risk.
High positive correlations   
JPMT
XOMMRK
JPMA
JPMTWTR
XOMJPM
MRKJPM
  
High negative correlations   
MRKMSFT
XOMMSFT
MSFTTWTR
MRKUBER
CRMTWTR
JPMMSFT

DOW Competition Risk-Adjusted Indicators

Nowadays, there is a big difference between DOW Index performing well and DOW index doing well compared to the competition. There are way too many exceptions to the normal that investors can tell for sure what's good or bad unless they analyze DOW's multiple risk-adjusted performance indicators. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.
Mean
Deviation
Jensen
Alpha
Sortino
Ratio
Treynor
Ratio
Semi
Deviation
Information
Ratio
Expected
Shortfall
Potential
Upside
Value
At Risk
Maximum
Drawdown
TWTR 1.73  0.49  0.19  3.16  1.73  0.13 (1.84)  3.56 (2.97)  27.10 
MSFT 1.76 (0.23)  0.00 (0.10)  0.00 (0.08)  0.00  3.76 (3.86)  11.64 
UBER 2.77 (0.02)  0.00  0.05  3.29 (0.0026) (3.22)  8.60 (5.58)  19.67 
F 2.00 (0.17)  0.00 (0.05)  0.00 (0.0487)  0.00  2.75 (5.14)  14.93 
T 1.24  0.07  0.04  0.15  1.22  0.0344 (1.41)  2.54 (2.11)  9.13 
A 1.72  0.18  0.11  0.20  1.74  0.09 (2.03)  3.98 (3.59)  9.04 
CRM 2.27 (0.30)  0.00 (0.15)  0.00 (0.1)  0.00  3.63 (4.48)  14.31 
JPM 1.51  0.20  0.13  0.24  1.34  0.11 (1.63)  4.20 (2.88)  7.57 
MRK 1.07  0.25  0.17  0.58  1.04  0.16 (1.23)  2.44 (1.75)  7.38 
XOM 1.62  0.18  0.08  0.26  1.82  0.08 (1.72)  3.65 (2.91)  9.75 

Did you try this?

Run Insider Screener Now

   

Insider Screener

Find insiders across different sectors to evaluate their impact on performance
All  Next Launch Module

DOW Against Global Markets

Submit DOW Story

Become Macroaxis DOW Contributor

Submit your story or your unique perspective on DOW and reach a very diverse and influential demographic landscape united by one goal - building optimal portfolios
Submit Macroaxis Story
Submit DOW Story  
Check out Your Current Watchlist. You can also try Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.

Other Tools for DOW Index

When running DOW price analysis, check to measure DOW's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy DOW is operating at the current time. Most of DOW's value examination focuses on studying past and present price action to predict the probability of DOW's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move DOW's price. Additionally, you may evaluate how the addition of DOW to your portfolios can decrease your overall portfolio volatility.
Portfolio Manager
State of the art Portfolio Manager to monitor and improve performance of your invested capital
Go
Options Analysis
Analyze and evaluate options and option chains as a potential hedge for your portfolios
Go
Watchlist Optimization
Optimize watchlists to build efficient portfolio or rebalance existing positions based on mean-variance optimization algorithm
Go
Headlines Timeline
Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity
Go
Price Ceiling Movement
Calculate and plot Price Ceiling Movement for different equity instruments
Go