Pair Correlation Between Taiwan Wtd and Nasdaq

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

Pair Volatility

Assuming 30 trading days horizon, Taiwan Wtd is expected to generate 1.08 times less return on investment than Nasdaq. But when comparing it to its historical volatility, Taiwan Wtd is 1.11 times less risky than Nasdaq. It trades about 0.58 of its potential returns per unit of risk. Nasdaq is currently generating about 0.56 of returns per unit of risk over similar time horizon. If you would invest  693,625  in Nasdaq on December 23, 2017 and sell it today you would earn a total of  40,013  from holding Nasdaq or generate 5.77% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between Taiwan Wtd and Nasdaq


Time Period1 Month [change]
StrengthVery Strong
ValuesDaily Returns


Almost no diversification

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

Comparative Volatility

 Predicted Return Density