Pair Correlation Between Taiwan Wtd and SP 500

This module allows you to analyze existing cross correlation between Taiwan Wtd and S&P 500. You can compare the effects of market volatilities on Taiwan Wtd and SP 500 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 SP 500. See also your portfolio center. Please also check ongoing floating volatility patterns of Taiwan Wtd and SP 500.
 Time Horizon     30 Days    Login   to change
 Taiwan Wtd  vs   S&P 500
 Performance (%) 

Pair Volatility

Assuming 30 trading days horizon, Taiwan Wtd is expected to under-perform the SP 500. But the index apears to be less risky and, when comparing its historical volatility, Taiwan Wtd is 1.08 times less risky than SP 500. The index trades about -0.32 of its potential returns per unit of risk. The S&P 500 is currently generating about -0.14 of returns per unit of risk over similar time horizon. If you would invest  283,913  in S&P 500 on January 23, 2018 and sell it today you would lose (13,780)  from holding S&P 500 or give up 4.85% of portfolio value over 30 days.

Correlation Coefficient

Pair Corralation between Taiwan Wtd and SP 500


Time Period1 Month [change]
ValuesDaily Returns


Average diversification

Overlapping area represents the amount of risk that can be diversified away by holding Taiwan Wtd and S&P 500 in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on SP 500 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 SP 500. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SP 500 has no effect on the direction of Taiwan Wtd i.e. Taiwan Wtd and SP 500 go up and down completely randomly.

Comparative Volatility

 Predicted Return Density