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.
|Investment Horizon||30 Days Login to change|
Assuming 30 trading days horizon, MerVal is expected to generate 5.970646059757069E14 times more return on investment than Taiwan Wtd. However, MerVal is 5.970646059757069E14 times more volatile than Taiwan Wtd. It trades about 0.22 of its potential returns per unit of risk. Taiwan Wtd is currently generating about -0.04 per unit of risk. If you would invest 2,778,260 in MerVal on October 21, 2017 and sell it today you would lose (65,410) from holding MerVal or give up 2.35% of portfolio value over 30 days.