Dow Correlations

DOW Stock

USD 44.65 0.72 1.64%

The current 90-days correlation between Dow Inc and Valhi Inc is 0.22 (i.e., Modest diversification). The correlation of Dow is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak. If the correlation is 0, the equities are not correlated; they are entirely random.

Dow Correlation With Market

Very weak diversification

The correlation between Dow Inc and DJI is 0.49 (i.e., Very weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Dow Inc and DJI in the same portfolio, assuming nothing else is changed.

Check out Investing Opportunities to better understand how to build diversified portfolios, which includes a position in Dow Inc. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in persons.

Moving together with Dow Stock

0.92	CE	Celanese	Pair Corr
0.88	BAK	Braskem SA Class	Pair Corr
0.66	EGO	Eldorado Gold Corp	Pair Corr
0.92	ERO	Ero Copper Corp	Pair Corr
0.65	FRD	Friedman Industries	Pair Corr
0.85	HUN	Huntsman	Pair Corr

Moving against Dow Stock

0.81	WS	Worthington Steel	Pair Corr
0.63	RS	Reliance Steel Aluminum	Pair Corr
0.57	WLKP	Westlake Chemical	Pair Corr
0.42	AA	Alcoa Corp Fiscal Year End 15th of January 2025	Pair Corr
0.42	IE	Ivanhoe Electric	Pair Corr
0.32	X	United States Steel	Pair Corr
0.61	CMC	Commercial Metals	Pair Corr

Related Correlations Analysis

	VHI	HUN	LXU	WLKP	TROX	ASIX	MEOH	GPRE	CE
VHI		0.5	0.64	-0.27	0.34	0.46	-0.23	-0.2	0.22	VHI
HUN	0.5		0.18	-0.6	0.78	0.24	-0.12	0.37	0.83	HUN
LXU	0.64	0.18		0.31	0.23	0.68	0.09	-0.49	-0.14	LXU
WLKP	-0.27	-0.6	0.31		-0.23	0.29	0.56	-0.34	-0.62	WLKP
TROX	0.34	0.78	0.23	-0.23		0.44	0.38	0.54	0.75	TROX
ASIX	0.46	0.24	0.68	0.29	0.44		0.45	-0.06	-0.1	ASIX
MEOH	-0.23	-0.12	0.09	0.56	0.38	0.45		0.35	-0.05	MEOH
GPRE	-0.2	0.37	-0.49	-0.34	0.54	-0.06	0.35		0.61	GPRE
CE	0.22	0.83	-0.14	-0.62	0.75	-0.1	-0.05	0.61		CE
	VHI	HUN	LXU	WLKP	TROX	ASIX	MEOH	GPRE	CE

Click cells to compare fundamentals

Check Volatility

Backtest Portfolio

Correlation Matchups

Over a given time period, the two securities move together 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

CE	+ 0.83	HUN
TROX	+ 0.78	HUN
CE	+ 0.75	TROX
ASIX	+ 0.68	LXU
LXU	+ 0.64	VHI
CE	+ 0.61	GPRE

High negative correlations

CE	- 0.62	WLKP
WLKP	- 0.6	HUN
GPRE	- 0.49	LXU
GPRE	- 0.34	WLKP
WLKP	- 0.27	VHI
TROX	- 0.23	WLKP

Risk-Adjusted Indicators

There is a big difference between Dow Stock performing well and Dow Company doing well as a business compared to the competition. There are so many exceptions to the norm that investors cannot definitively determine what's good or bad unless they analyze Dow's multiple risk-adjusted performance indicators across the competitive landscape. 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	Expected Shortfall	Potential Upside	Value @Risk	Maximum Drawdown
VHI	3.96	0.05	0.04	0.10	5.16	(4.64)	8.19	(7.20)	45.51
HUN	1.35	(0.15)	0.00	(0.09)	0.00	0.00	3.18	(3.35)	10.23
LXU	2.02	0.00	0.04	0.09	2.21	(2.27)	4.59	(4.10)	18.88
WLKP	0.43	0.03	(0.09)	0.72	0.41	(0.48)	0.87	(0.77)	2.54
TROX	2.27	(0.30)	0.00	(0.08)	0.00	0.00	6.11	(4.98)	17.98
ASIX	1.44	(0.08)	(0.01)	0.04	1.71	(1.61)	3.06	(2.64)	9.70
MEOH	1.60	(0.01)	(0.02)	0.06	2.61	(1.54)	3.29	(4.72)	11.13
GPRE	3.01	(0.24)	0.00	2.00	0.00	0.00	5.47	(7.90)	19.80
CE	1.96	(0.81)	0.00	(1.62)	0.00	0.00	2.94	(4.57)	33.85

Macroaxis helps investors of all levels and skills to maximize the upside of all their holdings and minimize the risk associated with market volatility, economic swings, and company-specific events. View terms and conditions

Feedback Blog

Made with optimal in San Francisco

2024 Macroaxis LLC