Pair Correlation Between Jakarta Comp and Taiwan Wtd

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

Pair Volatility

Assuming 30 trading days horizon, Jakarta Comp is expected to generate 465.53 times more return on investment than Taiwan Wtd. However, Jakarta Comp is 465.53 times more volatile than Taiwan Wtd. It trades about 0.21 of its potential returns per unit of risk. Taiwan Wtd is currently generating about 0.05 per unit of risk. If you would invest  595,267  in Jakarta Comp on October 23, 2017 and sell it today you would earn a total of  5,436,595  from holding Jakarta Comp or generate 913.3% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between Jakarta Comp and Taiwan Wtd
0.14

Parameters

Time Period1 Month [change]
DirectionPositive 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Diversification

Average diversification

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

 Predicted Return Density 
      Returns