Pair Correlation Between Taiwan Wtd and BSE

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

Pair Volatility

Assuming 30 trading days horizon, Taiwan Wtd is expected to generate 3.11 times less return on investment than BSE. But when comparing it to its historical volatility, Taiwan Wtd is 1.37 times less risky than BSE. It trades about 0.09 of its potential returns per unit of risk. BSE is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest  3,260,734  in BSE on October 24, 2017 and sell it today you would earn a total of  90,006  from holding BSE or generate 2.76% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between Taiwan Wtd and BSE
0.0

Parameters

Time Period1 Month [change]
DirectionFlat 
StrengthInsignificant
Accuracy95.65%
ValuesDaily Returns

Diversification

Pay attention

Overlapping area represents the amount of risk that can be diversified away by holding Taiwan Wtd and BSE in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on BSE and Taiwan Wtd 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 Taiwan Wtd are associated (or correlated) with BSE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BSE has no effect on the direction of Taiwan Wtd i.e. Taiwan Wtd and BSE go up and down completely randomly.
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Comparative Volatility