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Hoots : Market Relativity Theory? Would it be fair to assume this: High market-cap securities will usually perform influenced to some extent by the market/Index fund they are currently traded on. For example; the Turkish Borsa - freshhoot.com

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Market Relativity Theory?
Would it be fair to assume this:

High market-cap securities will usually perform influenced to some extent by the market/Index fund they are currently traded on.

For example; the Turkish Borsa Istanbul 100 stock Index finished the last trading day at 1.38%. It would be safe to assume that some of the largest companies trading in Turkey finish the same day with returns in a range statistically significant to the fund. For argument's sake keep Koc Holdings, which finished the same trading day with a 1.72% return in mind.

Elaborating on this concept, moreover, imagine hypothetically that Koc Holdings was traded on the NYSE. If the NYSE closes out the same trading day with returns of -2.50%, NYSE:Koc Holdings will finish the day on this market with returns statistically significant to those of the NYSE.

Identify flaws.


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As of this moment the DOW 30 is up 6.92% Year-to-date.

Of the 30 stocks in the index 6 are in negative territory for the year. And of the 6 in negative territory 3 are farther below 0 than the average is above 0. The investors in those 3 stocks (Boeing, Goldman Sachs and Nike) would look at this year so far as a disaster.

Individual stocks can move in opposite directions from the index.


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