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This module allows you to analyze existing cross correlation between Taiwan Wtd and Seoul Comp. You can compare the effects of market volatilities on Taiwan Wtd and Seoul Comp 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 Seoul Comp. See also your portfolio center. Please also check ongoing floating volatility patterns of Taiwan Wtd and Seoul Comp.
|Horizon||30 Days Login to change|
Predicted Return Density
Taiwan Wtd vs. Seoul Comp
Assuming 30 trading days horizon, Taiwan Wtd is expected to generate 0.92 times more return on investment than Seoul Comp. However, Taiwan Wtd is 1.08 times less risky than Seoul Comp. It trades about -0.01 of its potential returns per unit of risk. Seoul Comp is currently generating about -0.11 per unit of risk. If you would invest 977,520 in Taiwan Wtd on November 18, 2018 and sell it today you would lose (5,638) from holding Taiwan Wtd or give up 0.58% of portfolio value over 30 days.
Pair Corralation between Taiwan Wtd and Seoul Comp
|Time Period||2 Months [change]|
Diversification Opportunities for Taiwan Wtd and Seoul Comp
Almost no diversification
Overlapping area represents the amount of risk that can be diversified away by holding Taiwan Wtd and Seoul Comp in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Seoul Comp 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 Seoul Comp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Seoul Comp has no effect on the direction of Taiwan Wtd i.e. Taiwan Wtd and Seoul Comp go up and down completely randomly.