Pair Correlation Between BSE and Taiwan Wtd

This module allows you to analyze existing cross correlation between BSE and Taiwan Wtd. You can compare the effects of market volatilities on BSE 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 BSE with a short position of Taiwan Wtd. See also your portfolio center. Please also check ongoing floating volatility patterns of BSE and Taiwan Wtd.
 Time Horizon     30 Days    Login   to change
 BSE  vs   Taiwan Wtd
 Performance (%) 

Pair Volatility

Assuming 30 trading days horizon, BSE is expected to generate 0.57 times more return on investment than Taiwan Wtd. However, BSE is 1.75 times less risky than Taiwan Wtd. It trades about -0.28 of its potential returns per unit of risk. Taiwan Wtd is currently generating about -0.26 per unit of risk. If you would invest  3,551,158  in BSE on January 19, 2018 and sell it today you would lose (150,082)  from holding BSE or give up 4.23% of portfolio value over 30 days.

Correlation Coefficient

Pair Corralation between BSE 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 BSE and Taiwan Wtd in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Taiwan Wtd and BSE 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 BSE 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 BSE i.e. BSE and Taiwan Wtd go up and down completely randomly.

Comparative Volatility

 Predicted Return Density