DOW Index Volatility

DJI -  USA Index  

 35,295  382.20  1.09%

DOW secures Sharpe Ratio (or Efficiency) of 0.0836, which denotes the index had 0.0836% of return per unit of volatility over the last 3 months. Our approach towards predicting the volatility of an index is to use all available market data together with index-specific technical indicators that cannot be diversified away. We have found twenty-eight technical indicators for DOW, which you can use to evaluate the future volatility of the entity.

DOW Volatility 

DOW Index volatility depicts how high the prices fluctuate around the mean (or its average) price. In other words, it is a statistical measure of the distribution of DOW daily returns, and it is calculated using variance and standard deviation. We also use DOW's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of DOW volatility.

DOW Index Volatility Analysis

The output start index for this execution was zero with a total number of output elements of sixty-one. The Median Price line plots median indexes of DOW price series. View also all equity analysis or get more info about median price price transform indicator.

DOW Projected Return Density Against Market

 Predicted Return Density 

About DOW Volatility

Volatility is a rate at which the price of DOW or any other equity instrument increases or decreases for a given set of returns. It is measured by calculating the standard deviation of the annualized returns over a given period of time and shows the range to which the price of DOW may increase or decrease. In other words, similar to DOW's beta indicator, it measures the risk of DOW and helps estimate the fluctuations that may happen in a short period of time. So if prices of DOW fluctuate rapidly in a short time span, it is termed to have high volatility, and if it swings slowly in a more extended period, it is understood to have low volatility.
Please read more on our technical analysis page.

Nearest DOW long CALL Option Payoff at Expiration

DOW's implied volatility is one of the determining factors in the pricing options written on DOW. Implied volatility approximates the future value of DOWusing the option's current value. Options with high implied volatility have higher premiums and can be used to hedge the downside of investing in DOW over a specific time period.
View All DOW options
2021-10-22 CALL at $335.0 is a CALL option contract on DOW's common stock with a strick price of 335.0 expiring on 2021-10-22. The contract was not traded in recent days and, as of today, has 6 days remaining before the expiration. The option is currently trading at a bid price of $17.05, and an ask price of $19.0. The implied volatility as of the 16th of October 2021 is 21.7474.
      DOW Price At Expiration 

DOW Investment Opportunity

DOW has the same returns volatility as DOW considering given time horizon. of all equities and portfolios are less risky than DOW. Compared to the overall equity markets, volatility of historical daily returns of DOW is lower than 6 () of all global equities and portfolios over the last 90 days.

DOW Additional Risk Indicators

The analysis of DOW's secondary risk indicators is one of the essential steps in making a buy or sell decision. The process involves identifying the amount of risk involved in DOW's investment and either accepting that risk or mitigating it. Along with some common measures of DOW stock risk such as standard deviation, beta, or value at risk, we also provide a set of secondary indicators that can assist in the individual investment decision or help in hedging the risk of your existing portfolios.
Risk Adjusted Performance0.0163
Mean Deviation0.6089
Semi Deviation0.7997
Downside Deviation0.8231
Coefficient Of Variation4828.54
Standard Deviation0.7889
Please note, the risk measures we provide can be used independently or collectively to perform a risk assessment. When comparing two potential stock investments, we recommend comparing similar equities with homogenous growth potential and valuation from related markets to determine which investment holds the most risk.

DOW Suggested Diversification Pairs

Pair trading is one of the very effective strategies used by professional day traders and hedge funds capitalizing on short-time and mid-term market inefficiencies. The approach is based on the fact that the ratio of prices of two correlating shares is long-term stable and oscillates around the average value. If the correlation ratio comes outside the common area, you can speculate with a high success rate that the ratio will return to the mean value and collect a profit.
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The effect of pair diversification on risk is to reduce it, but we should note this doesn't apply to all risk types. When we trade pairs against DOW as a counterpart, there is always some inherent risk that will never be diversified away no matter what. This volatility limits the effect of tactical diversification using pair trading. DOW's systematic risk is the inherent uncertainty of the entire market, and therefore cannot be mitigated even by pair-trading it against the equity that is not highly correlated to it. On the other hand, DOW's unsystematic risk describes the types of risk that we can protect against, at least to some degree, by selecting a matching pair that is not perfectly correlated to DOW.
Check out Your Current Watchlist. Note that the DOW information on this page should be used as a complementary analysis to other DOW's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Piotroski F Score module to get Piotroski F Score based on binary analysis strategy of nine different fundamentals.

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.
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