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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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  • What on earth does statistically significant mean in this question? – Joe Aug 11 '16 at 16:12
  • investopedia.com/terms/s/statistically_significant.asp – sawreals2 Aug 11 '16 at 16:14
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    I'm very well versed in the meaning of statistically significant in general. Your use in the above paragraphs is somewhere between confusing and incorrect, though. You're at minimum missing a term between statistically significant and to. Do you mean significantly different, or significantly correlated, or ... something else? You also cannot take a single specific instance and make any sort of "significant" statement about it; you can only use significance testing on a dataset of many points. You might make a prediction that a value will be similar or different (cont) – Joe Aug 11 '16 at 16:17
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    (cont) but you would not use the words statistically significant with that prediction; you might describe the accuracy of that prediction, perhaps. – Joe Aug 11 '16 at 16:18
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    I suggest you read a bit more on statistical measures, or take a class or something. You're still making zero sense: you need a comparison noun that is statistically significant. The correlation is significant. The difference is significant. Etc. Significant is an adjective, and statistically is an adverb. – Joe Aug 11 '16 at 18:00
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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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  • Good point. Perhaps my point can be modified to the extent of foreign markets, some of which are much more volatile than the NYSE can be influenced greatly by large companies within their market. KOC Holdings is one of the largest companies in Turkey, as a result it affects the performance of the Turkish Market. – sawreals2 Aug 11 '16 at 16:13

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