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Both S&P and DJIA Return 14.98% In Q3. To The Dot.
Correlation algorithms were working overtime in Q3, when both the S&P and the DJIA returned exactly 14.98% each.
As a reminder, here are the 30 companies that make up the DJIA and here are the 500 companies that constitute the S&P.
We will leave the statistical analysis of the probability of identitical returns over a 3 month period for two completely different stock universes to the experts, suffice it to add that in Q3 fundamentals obviously played a major, decisive role in overall market movements.
h/t Joel
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Courtesy "Big bald Brother".
Kinda like a grading valuation curve.... We wouldn't want anyone to whine about revenue discrimination, would we....?
Somebody bet somebody a dollar that they could make this happen and nobody would notice or care...unbelievable
Turn those machines back on damnit!!!!
Do you think it was pumped to 14.98% instead of, say, 15% to increase believability that it could really happen "naturally"?
Does it still match if you bring it out to three decimal places? :>)
Not quite:
Dow = 14.979046%
S&P = 14.984589%
So you see, they don't really match at all!
Edit: for further comic relief: NASDAQ Q3 return = 15.66%
Yeah, numbers... my portfolio is @ -14.98 for the same period. Gee, what a coincidence. Must be from my Rosie glasses...
nope, the error rate between the two amounts to .00036 or roughly 4 in 10,000. This is statistically insignificant, and most likely a gap in the algorithm.
Its not a gap in the algo, the algo is rather a darn good one, it just couldnt account for few thousand (or so) of those pesky daytraders... :-D
Check it against Benford's Law.
I am Chumbawamba.
Once is happenstance. Twice is coincidence. Three times is enemy action.
i am stunned at the lack of news relating to japan...aka the 2nd largest economy
the dollar is absolutely killing the japanese.
the nikkei is back under 9k...they deflated at over -2% last month.
talk about collateral damage...
The weak dollar is killing Europeans as well. Just they other day they claimed their allegiance to the $... trashing (criticising) us in the last 9 years, why would they suddenly do so?
Well there you go. With such diversity from both indices, how in hell does this happen? I'd accept it if all you had to trade was DIA and SPY, but......well there you go
I've noticed this for some time because I go to finance.google.com to check out my charts. Right on the front page, it shows the DJIA, S&P500, and NASDAQ all on one graph.
I've been noticing for months on end, that day after day, all three indices are basically carbon copies of each other. I can't remember a single day that any of the three had any significantly different pattern than the other two. They go up at the same time, down at the same time. The only minor differences are the amount that each go up and down.
It's totally obvious that robo-traders are in control and they're just buying index futures in huge amounts.
Looks like that gain is on its way to being erased today. Am I the only one who thought that it made sense to keep the market pumped through 9/30 Q3, enough time to get out if you wanted to, and then let er rip?
I, for one, think Nargles are to blame here
For those like me who are over 50, could you please flag your Harry Potter references so I don't wear out Google?
They have enough problems on their hands spying for the NSA without me using up all their resources.
Thank you HAL 9000
Hey, anyone know how much it is to colo a 1U at the NYSE ?
With 1Gb connection to the flash order network of course...
They should equally fall 80% to a tee
The coincidence algo caused that.
GS just revised down their payroll number for tomorrow to -250k from -200, funny how they make revisions the night before the number comes out. odds they get it spot on?
Tyler, why not try using the COMP function instead? It shows you price change and total return, including dividends. While price % change is 14.98 at each, total return is 15.82% DJIA vs. 15.61% S&P. feel better now?
Both indices are products of the same forces.
I hate statistics.
A Fixed roulette wheel is not as constant in it's results wall street is the biggest casino on the earth and it is totally rigged