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This module allows you to analyze existing cross correlation between Madrid Gnrl and Taiwan Wtd. You can compare the effects of market volatilities on Madrid Gnrl 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 Madrid Gnrl with a short position of Taiwan Wtd. See also your portfolio center. Please also check ongoing floating volatility patterns of Madrid Gnrl and Taiwan Wtd.
|Horizon||30 Days Login to change|
Predicted Return Density
Madrid Gnrl vs. Taiwan Wtd
Assuming 30 trading days horizon, Madrid Gnrl is expected to generate 1.47 times less return on investment than Taiwan Wtd. But when comparing it to its historical volatility, Madrid Gnrl is 1.04 times less risky than Taiwan Wtd. It trades about 0.2 of its potential returns per unit of risk. Taiwan Wtd is currently generating about 0.28 of returns per unit of risk over similar time horizon. If you would invest 952,709 in Taiwan Wtd on January 20, 2019 and sell it today you would earn a total of 62,517 from holding Taiwan Wtd or generate 6.56% return on investment over 30 days.
Pair Corralation between Madrid Gnrl and Taiwan Wtd
|Time Period||2 Months [change]|
Diversification Opportunities for Madrid Gnrl and Taiwan Wtd
Very good diversification
Overlapping area represents the amount of risk that can be diversified away by holding Madrid Gnrl and Taiwan Wtd in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Taiwan Wtd and Madrid Gnrl 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 Madrid Gnrl 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 Madrid Gnrl i.e. Madrid Gnrl and Taiwan Wtd go up and down completely randomly.