Pair Correlation Between DOW and Taiwan Wtd

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

Pair Volatility

Given the investment horizon of 30 days, DOW is expected to under-perform the Taiwan Wtd. In addition to that, DOW is 1.85 times more volatile than Taiwan Wtd. It trades about -0.15 of its total potential returns per unit of risk. Taiwan Wtd is currently generating about 0.24 per unit of volatility. If you would invest  1,066,238  in Taiwan Wtd on February 22, 2018 and sell it today you would earn a total of  34,346  from holding Taiwan Wtd or generate 3.22% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between DOW and Taiwan Wtd


Time Period1 Month [change]
ValuesDaily Returns


Very good diversification

Overlapping area represents the amount of risk that can be diversified away by holding DOW and Taiwan Wtd in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Taiwan Wtd and DOW 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 DOW 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 DOW i.e. DOW and Taiwan Wtd go up and down completely randomly.

Comparative Volatility

 Predicted Return Density