This module allows you to analyze existing cross correlation between NASDAQ Italy and Taiwan Wtd. You can compare the effects of market volatilities on NASDAQ Italy 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 NASDAQ Italy with a short position of Taiwan Wtd. See also your portfolio center. Please also check ongoing floating volatility patterns of NASDAQ Italy and Taiwan Wtd.
|Horizon||30 Days Login to change|
Predicted Return Density
NASDAQ Italy vs. Taiwan Wtd
Assuming 30 trading days horizon, NASDAQ Italy is expected to generate 2.2 times more return on investment than Taiwan Wtd. However, NASDAQ Italy is 2.2 times more volatile than Taiwan Wtd. It trades about 0.05 of its potential returns per unit of risk. Taiwan Wtd is currently generating about 0.07 per unit of risk. If you would invest 109,487 in NASDAQ Italy on September 16, 2019 and sell it today you would earn a total of 2,457 from holding NASDAQ Italy or generate 2.24% return on investment over 30 days.
Pair Corralation between NASDAQ Italy and Taiwan Wtd
|Time Period||3 Months [change]|
Diversification Opportunities for NASDAQ Italy and Taiwan Wtd
Very good diversification
Overlapping area represents the amount of risk that can be diversified away by holding NASDAQ Italy and Taiwan Wtd in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Taiwan Wtd and NASDAQ Italy 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 NASDAQ Italy 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 NASDAQ Italy i.e. NASDAQ Italy and Taiwan Wtd go up and down completely randomly.
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