Pair Correlation Between IBEX 35 and Taiwan Wtd

This module allows you to analyze existing cross correlation between IBEX 35 and Taiwan Wtd. You can compare the effects of market volatilities on IBEX 35 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 IBEX 35 with a short position of Taiwan Wtd. See also your portfolio center. Please also check ongoing floating volatility patterns of IBEX 35 and Taiwan Wtd.
 Time Horizon     30 Days    Login   to change
 IBEX 35  vs   Taiwan Wtd
 Performance (%) 

Pair Volatility

Assuming 30 trading days horizon, IBEX 35 is expected to generate 1.77 times less return on investment than Taiwan Wtd. In addition to that, IBEX 35 is 1.19 times more volatile than Taiwan Wtd. It trades about 0.26 of its total potential returns per unit of risk. Taiwan Wtd is currently generating about 0.55 per unit of volatility. If you would invest  1,053,727  in Taiwan Wtd on December 22, 2017 and sell it today you would earn a total of  61,358  from holding Taiwan Wtd or generate 5.82% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between IBEX 35 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 IBEX 35 and Taiwan Wtd in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Taiwan Wtd and IBEX 35 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 IBEX 35 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 IBEX 35 i.e. IBEX 35 and Taiwan Wtd go up and down completely randomly.

Comparative Volatility

 Predicted Return Density