This module allows you to analyze existing cross correlation between Taiwan Wtd and NIKKEI 225. You can compare the effects of market volatilities on Taiwan Wtd and NIKKEI 225 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 NIKKEI 225. See also your portfolio center. Please also check ongoing floating volatility patterns of Taiwan Wtd and NIKKEI 225.
|Investment Horizon||30 Days Login to change|
Assuming 30 trading days horizon, Taiwan Wtd is expected to generate 7.82 times less return on investment than NIKKEI 225. But when comparing it to its historical volatility, Taiwan Wtd is 2.14 times less risky than NIKKEI 225. It trades about 0.05 of its potential returns per unit of risk. NIKKEI 225 is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 2,169,665 in NIKKEI 225 on October 23, 2017 and sell it today you would earn a total of 71,983 from holding NIKKEI 225 or generate 3.32% return on investment over 30 days.