Pair Correlation Between Taiwan Wtd and MerVal

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

Pair Volatility

Assuming 30 trading days horizon, Taiwan Wtd is expected to generate 2.45 times less return on investment than MerVal. But when comparing it to its historical volatility, Taiwan Wtd is 2.66 times less risky than MerVal. It trades about 0.58 of its potential returns per unit of risk. MerVal is currently generating about 0.54 of returns per unit of risk over similar time horizon. If you would invest  2,918,562  in MerVal on December 23, 2017 and sell it today you would earn a total of  440,608  from holding MerVal or generate 15.1% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between Taiwan Wtd and MerVal


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 MerVal in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on MerVal 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 MerVal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MerVal has no effect on the direction of Taiwan Wtd i.e. Taiwan Wtd and MerVal go up and down completely randomly.

Comparative Volatility

 Predicted Return Density