Pair Correlation Between ATX and Taiwan Wtd

This module allows you to analyze existing cross correlation between ATX and Taiwan Wtd. You can compare the effects of market volatilities on ATX and Taiwan Wtd and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in ATX with a short position of Taiwan Wtd. See also your portfolio center. Please also check ongoing floating volatility patterns of ATX and Taiwan Wtd.
 Time Horizon     30 Days    Login   to change
 ATX  vs   Taiwan Wtd
 Performance (%) 

Pair Volatility

Given the investment horizon of 30 days, ATX is expected to generate 0.91 times more return on investment than Taiwan Wtd. However, ATX is 1.09 times less risky than Taiwan Wtd. It trades about -0.23 of its potential returns per unit of risk. Taiwan Wtd is currently generating about -0.26 per unit of risk. If you would invest  364,300  in ATX on January 19, 2018 and sell it today you would lose (23,501)  from holding ATX or give up 6.45% of portfolio value over 30 days.

Correlation Coefficient

Pair Corralation between ATX and Taiwan Wtd


Time Period1 Month [change]
ValuesDaily Returns


Poor diversification

Overlapping area represents the amount of risk that can be diversified away by holding ATX and Taiwan Wtd in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Taiwan Wtd and ATX is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on ATX are associated (or correlated) with Taiwan Wtd. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Taiwan Wtd has no effect on the direction of ATX i.e. ATX and Taiwan Wtd go up and down completely randomly.

Comparative Volatility

 Predicted Return Density