Pair Correlation Between NZSE and Taiwan Wtd

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

Pair Volatility

Assuming 30 trading days horizon, NZSE is expected to generate 0.55 times more return on investment than Taiwan Wtd. However, NZSE is 1.8 times less risky than Taiwan Wtd. It trades about 0.01 of its potential returns per unit of risk. Taiwan Wtd is currently generating about -0.17 per unit of risk. If you would invest  831,945  in NZSE on January 25, 2018 and sell it today you would earn a total of  197.00  from holding NZSE or generate 0.02% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between NZSE and Taiwan Wtd


Time Period1 Month [change]
StrengthVery Weak
ValuesDaily Returns


Modest diversification

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

Comparative Volatility

 Predicted Return Density