This module allows you to analyze existing cross correlation between MerVal and Taiwan Wtd. You can compare the effects of market volatilities on MerVal 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 MerVal with a short position of Taiwan Wtd. See also your portfolio center. Please also check ongoing floating volatility patterns of MerVal and Taiwan Wtd.
|Time Horizon||30 Days Login to change|
MerVal vs. Taiwan Wtd
Assuming 30 trading days horizon, MerVal is expected to under-perform the Taiwan Wtd. In addition to that, MerVal is 1.35 times more volatile than Taiwan Wtd. It trades about -0.1 of its total potential returns per unit of risk. Taiwan Wtd is currently generating about -0.05 per unit of volatility. If you would invest 1,079,455 in Taiwan Wtd on March 25, 2018 and sell it today you would lose (20,701) from holding Taiwan Wtd or give up 1.92% of portfolio value over 30 days.