DOW JONES Correlations

DJI Stock   34,303  227.30  0.67%   
The correlation of DOW JONES 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 JONES moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if DOW JONES INDUSTRIAL 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.
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The ability to find closely correlated positions to DOW JONES 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 JONES 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 JONES - 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 JONES INDUSTRIAL to buy it.

Moving together with DOW JONES

+0.642628China Life InsurancePairCorr
+0.882881Fubon Financial HoldingPairCorr
+0.7BRK-ABerkshire HathawayPairCorr
+0.8PKXPOSCO HoldingsPairCorr
+0.87SKMSK Telecom Earnings Call This WeekPairCorr
+0.66KBKB Financial GroupPairCorr
+0.71TRVThe Travelers CompaniesPairCorr
+0.82DDDupont De NemoursPairCorr
+0.78MRKMerck Company Earnings Call This WeekPairCorr

Moving against DOW JONES

-0.62AMZNAmazon Inc Earnings Call This WeekPairCorr

Related Correlations

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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   
AVYSNA
SYYHRL
VNO-POSNA
SNANKE
VNO-POAVY
AVYNKE
  
High negative correlations   
SYYNKE
CAGSYY
NKEHRL
CAGHRL
SYYISRG
VNO-POCAG

Risk-Adjusted Indicators

Nowadays, there is a big difference between DOW JONES Index performing well and DOW JONES 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 JONES'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
HRL 0.77 (0.06) (0.14) (0.01)  1.18 (0.16) (0.75)  1.86 (1.77)  6.13 
NKE 1.82  0.29  0.24  0.33  1.27  0.16 (2.15)  5.97 (2.46)  14.37 
SNA 1.05  0.06  0.04  0.23  0.97  0.0367 (1.15)  2.59 (1.83)  6.49 
ISRG 1.63 (0.07)  0.01  0.13  1.87  0.0091 (1.77)  2.88 (4.20)  14.70 
AVY 1.55 (0.07) (0.01)  0.11  2.28 (0.0159) (1.56)  3.18 (2.53)  13.61 
SYY 0.98 (0.18)  0.00 (0.08)  0.00 (0.17)  0.00  1.67 (2.84)  7.36 
CAG 0.92  0.02 (0.08)  0.26  1.07 (0.08) (1.00)  2.48 (1.74)  7.36 
VNO-PO 1.37  0.16  0.07  0.37  1.45  0.06 (1.53)  2.65 (2.85)  10.40 

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DOW JONES Distribution of Returns

   Predicted Return Density   
       Returns  
DOW JONES's volatility is measured either by using standard deviation or beta. Standard deviation will reflect the average amount of how dow jones index's price will differ from the mean after some time.To get its calculation, you should first determine the mean price during the specified period then subtract that from each price point.

What Drives a DOW JONES Price Volatility?

Several factors can influence a index's market volatility:

Industry

Specific events can influence volatility within a particular industry. For instance, a significant weather upheaval in a crucial oil-production site may cause oil prices to increase in the oil sector. The direct result will be the rise in the stock price of oil distribution companies. Similarly, any government regulation in a specific industry could negatively influence stock prices due to increased regulations on compliance that may impact the company's future earnings and growth.

Political and Economic environment

When governments make significant decisions regarding trade agreements, policies, and legislation regarding specific industries, they will influence stock prices. Everything from speeches to elections may influence investors, who can directly influence the stock prices in any particular industry. The prevailing economic situation also plays a significant role in stock prices. When the economy is doing well, investors will have a positive reaction and hence, better stock prices and vice versa.

The Company's Performance

Sometimes volatility will only affect an individual company. For example, a revolutionary product launch or strong earnings report may attract many investors to purchase the company. This positive attention will raise the company's stock price. In contrast, product recalls and data breaches may negatively influence a company's stock prices.

DOW JONES Against Global Markets

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When running DOW JONES INDUSTRIAL price analysis, check to measure DOW JONES'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 JONES is operating at the current time. Most of DOW JONES's value examination focuses on studying past and present price action to predict the probability of DOW JONES's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move DOW JONES's price. Additionally, you may evaluate how the addition of DOW JONES to your portfolios can decrease your overall portfolio volatility.
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Please note, there is a significant difference between DOW JONES's value and its price as these two are different measures arrived at by different means. Investors typically determine DOW JONES value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, DOW JONES's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.