Pair Correlation Between Taiwan Wtd and DOW

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

Pair Volatility

Assuming 30 trading days horizon, Taiwan Wtd is expected to generate 1.01 times less return on investment than DOW. In addition to that, Taiwan Wtd is 1.09 times more volatile than DOW. It trades about 0.55 of its total potential returns per unit of risk. DOW is currently generating about 0.6 per unit of volatility. If you would invest  2,475,406  in DOW on December 22, 2017 and sell it today you would earn a total of  131,766  from holding DOW or generate 5.32% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between Taiwan Wtd and DOW


Time Period1 Month [change]
ValuesDaily Returns


Very poor diversification

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

Comparative Volatility

 Predicted Return Density