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Dow Jones Industrial Average Return Rate vs. US Imports Growth Rate: Data
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DJIA Return Rate
Simultaneous Change
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DJIA Return Rate
Subsequent Change
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1% Rise in US Imports Growth Rate over 1 Year
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1% Decline in US Imports Growth Rate in 1 Year
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Industrial Average Return Rate decline during that year and a 0.33% Dow Jones
Industrial Average Return Rate decline the following year.
It also indicates that a 1% US Imports Growth Rate decline over a 12 month period,
(from 5% to 4% for example) has typically been accompanied by a 0.03% Dow Jones
Industrial Average Return Rate increase during that year and a 0.36% Dow Jones
Industrial Average Return Rate increase the following year.
The center column shows the change in the Dow Jones Industrial Average Return
Rate over 12 months, depending on whether the period experienced a rising or falling
US Imports Growth Rate. The right column shows the change in the Dow Jones
Industrial Average Return Rate during the year following an increase or decrease in
the US Imports Growth Rate.
The data history in the middle column shows no significant tendency for the
direction of the two rates to correlate. (They don't tend to move in the same
direction. They don't tend to move in opposite directions. The direction of
the rates seem to be unrelated to each other.)
The evidence for using the previous 12 month change in the US Imports
Growth Rate to predict the future direction of the Dow Jones Industrial
Average Return Rate is significant (right column). However, the direction of
the rates are inversely related to each other. A change in the US Imports
Growth Rate suggests that the Dow Jones Industrial Average Return Rate
will move in the opposite direction of the US Imports Growth Rate.
Annual rate data is shown in the graph and calculations.
How Do I Use This Information?
There are many investment theories that are well publicized in the financial press.
Even though little or no historical data may be offered as evidence for such theories,
many investors use them subconsciously, if not intentionally.
Example Theories: Rising Inflation is bad for the stock market. A booming housing
market is good for the S&P 500 stock index. A falling fed funds rate means that long
term interest rates will fall.
There are many such theories. In this site, long term investment and economic data
is tested against decades to determine whether a relationship actually exists or not.
This historical correlation provides a vital aid in interpreting the often confusing
behavior of the financial markets. The perspective gained may be the difference
between staying the course or being blown and tossed by every investment theory
that is popular at the moment. What the majority assumes to be true, often is not. In
the final analysis, readers are admonished to follow the evidence, wherever it leads.
This page tests the relationship between the US Imports Growth Rate and the Dow
Jones Industrial Average Return Rate. Suppose you are making a business or
investment decision. Suppose again that the decision hinges on whether the US
Imports Growth Rate and the Dow Jones Industrial Average Return Rate tend to move
in the same or opposite directions. The data, graphs, and analysis above will
enlighten you. You'll discover whether they move with, inversely to, or independently
of each other.
Suppose that the US Imports Growth Rate has risen sharply and that you need to
know what direction the Dow Jones Industrial Average Return Rate is headed in the
near future. Does the recent increase in the US Imports Growth Rate provide a clue
about the future direction of the Dow Jones Industrial Average Return Rate? The data
history, graph, and analysis above will show you how the Dow Jones Industrial
Average Return Rate has performed after increases in the US Imports Growth Rate.
You'll see if one indicator has been likely to signal a change in another. This is not
intended as a prediction, but merely as a clue to the future from the annals of history.
No man knows the future, unless he has the ability to control the future.
This site compares data series for interest rates, stock indexes, economic indicators,
currency exchange rates and real estate values. Suppose that you want to see how
stock indexes are influenced by interest rates or the value of the dollar. Click one of
the stock index links on the right side of any page. Links to our multi-series graphs
and correlation analysis may be found at the bottom-center of the stock index pages.
Formula for periods with a rising US Imports Growth Rate:
1) Change in the Dow Jones Industrial Average Return Rate DURING periods with a
rising US Imports Growth Rate:
The abbreviated formula is: (Dow Jones Industrial Average Return Rate Change / US
Imports Growth Rate Rise) x 1% = Published Rate.
The complete formula is: [(Average change in the Dow Jones Industrial Average
Return Rate over all rolling 12 month periods with a rising US Imports Growth Rate) /
(Average Rise in the US Imports Growth Rate over the same 12 month periods)] x 1%
= Published Rate.
2) Change in the Dow Jones Industrial Average Return Rate AFTER a rising US
Imports Growth Rate:
The abbreviated formula is: (Subsequent Dow Jones Industrial Average Return Rate
Change / US Imports Growth Rate Rise) x 1% = Published Rate.
The complete formula is: [(Average change in the Dow Jones Industrial Average
Return Rate during the 12 months following any rolling 12 month base period with a
rising US Imports Growth Rate) / (Average Rise in the US Imports Growth Rate over
the 12 month base periods)] x 1% = Published Rate.
Formula for periods with a declining US Imports Growth Rate:
1) Change in the Dow Jones Industrial Average Return Rate DURING periods with a
declining US Imports Growth Rate:
The abbreviated formula is: (Dow Jones Industrial Average Return Rate Change / US
Imports Growth Rate Decline) x -1% = Published Rate.
The complete formula is: [(Average change in the Dow Jones Industrial Average
Return Rate over all rolling 12 month periods with a declining US Imports Growth
Rate) / (Average decline in the US Imports Growth Rate over the same 12 month
periods)] x -1% = Published Rate.
2) Change in the Dow Jones Industrial Average Return Rate AFTER a decreasing US
Imports Growth Rate:
The abbreviated formula is: (Subsequent Dow Jones Industrial Average Return Rate
Change / US Imports Growth Rate Decrease) x -1% = Published Rate.
The complete formula is: [(Average change in the Dow Jones Industrial Average
Return Rate during the 12 months following any rolling 12 month base period with a
declining US Imports Growth Rate) / (Average decline in the US Imports Growth Rate
over the 12 month base periods)] x -1% = Published Rate.
Rolling 12 Month Periods Defined:
Overlapping 12 month periods in a monthly data base.
For example:
In the 24 month period included in 2000 - 2001, there are 13 complete rolling 12
month periods. The first is January, 2000 - December, 2000. The second is February,
2000 - January, 2001. The third is March, 2000 - February, 2001 and so on. The last
complete rolling 12 month period in the 2000 - 2001 period is January, 2001 -
December, 2001.
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