This module allows you to analyze existing cross correlation between Taiwan Wtd and Hang Seng. You can compare the effects of market volatilities on Taiwan Wtd and Hang Seng 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 Hang Seng. See also your portfolio center. Please also check ongoing floating volatility patterns of Taiwan Wtd and Hang Seng.
|Investment Horizon||30 Days Login to change|
Assuming 30 trading days horizon, Taiwan Wtd is expected to under-perform the Hang Seng. But the index apears to be less risky and, when comparing its historical volatility, Taiwan Wtd is 1.86 times less risky than Hang Seng. The index trades about -0.03 of its potential returns per unit of risk. The Hang Seng is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 2,848,724 in Hang Seng on October 20, 2017 and sell it today you would earn a total of 71,180 from holding Hang Seng or generate 2.5% return on investment over 30 days.