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by stygiansonic 4118 days ago
The correlation between SPX and the DJIA will generally be quite high, because sampling 30 stocks (and generally those with the biggest market caps) gives you a good estimate/representation.

As a result, over short periods of time, the spread between the two will be relatively small.

Over long periods of time however, the spread can be significant. See the following:

1. http://avondaleam.com/dow-jones-vs-sp/

2. http://www.thumbcharts.com/101035/DJIA-vs-S-P-500 (Compare 1, 2, 3 and 5 years)