Dow Jones is enlisted at 600.88 as of the 12th of January 2025; that is 0.56% down since the beginning of the trading day. The index's open price was 604.29. Dow Jones has hardly any chance of experiencing price decline in the next few years but had a somewhat weak performance during the last 90 days. The performance scores are derived for the period starting the 14th of October 2024 and ending today, the 12th of January 2025. Click here to learn more.
Dow Jones Industrial has a standard deviation of returns of 0.82 and is 1.12 times more volatile than Dow Jones Germany. 6 percent of all equities and portfolios are less risky than Dow Jones.
Dow Jones' volatility is measured either by using standard deviation or beta. Standard deviation will reflect the average amount of how dow 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.
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