Correlation Analysis Between EURONEXT BEL-20 and Taiwan Wtd

This module allows you to analyze existing cross correlation between EURONEXT BEL-20 and Taiwan Wtd. You can compare the effects of market volatilities on EURONEXT BEL-20 and Taiwan Wtd 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 EURONEXT BEL-20 with a short position of Taiwan Wtd. See also your portfolio center. Please also check ongoing floating volatility patterns of EURONEXT BEL-20 and Taiwan Wtd.
Horizon     30 Days    Login   to change
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Comparative Performance

 Predicted Return Density 

EURONEXT BEL-20  vs.  Taiwan Wtd

 Performance (%) 

Pair Volatility

Given the investment horizon of 30 days, EURONEXT BEL-20 is expected to generate 1.87 times more return on investment than Taiwan Wtd. However, EURONEXT BEL-20 is 1.87 times more volatile than Taiwan Wtd. It trades about 0.17 of its potential returns per unit of risk. Taiwan Wtd is currently generating about 0.31 per unit of risk. If you would invest  345,420  in EURONEXT BEL-20 on October 13, 2019 and sell it today you would earn a total of  44,428  from holding EURONEXT BEL-20 or generate 12.86% return on investment over 30 days.

Pair Corralation between EURONEXT BEL-20 and Taiwan Wtd

Time Period3 Months [change]
ValuesDaily Returns

Diversification Opportunities for EURONEXT BEL-20 and Taiwan Wtd

EURONEXT BEL-20 diversification synergy

Very poor diversification

Overlapping area represents the amount of risk that can be diversified away by holding EURONEXT BEL-20 and Taiwan Wtd in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Taiwan Wtd and EURONEXT BEL-20 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 EURONEXT BEL-20 are associated (or correlated) with Taiwan Wtd. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Taiwan Wtd has no effect on the direction of EURONEXT BEL-20 i.e. EURONEXT BEL-20 and Taiwan Wtd go up and down completely randomly.
See also your portfolio center. Please also try Fundamental Analysis module to view fundamental data based on most recent published financial statements.