Correlation Analysis Between Taiwan Wtd and Madrid Gnrl

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

 Predicted Return Density 
      Returns 

Taiwan Wtd  vs.  Madrid Gnrl

 Performance (%) 
      Timeline 

Pair Volatility

Assuming 30 trading days horizon, Taiwan Wtd is expected to generate 1.04 times more return on investment than Madrid Gnrl. However, Taiwan Wtd is 1.04 times more volatile than Madrid Gnrl. It trades about 0.28 of its potential returns per unit of risk. Madrid Gnrl is currently generating about 0.2 per unit of risk. 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 Taiwan Wtd and Madrid Gnrl

-0.29
Time Period2 Months [change]
DirectionNegative 
StrengthInsignificant
Accuracy62.86%
ValuesDaily Returns

Diversification Opportunities for Taiwan Wtd and Madrid Gnrl

Taiwan Wtd diversification synergy

Very good diversification

Overlapping area represents the amount of risk that can be diversified away by holding Taiwan Wtd and Madrid Gnrl in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Madrid Gnrl 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 Madrid Gnrl. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Madrid Gnrl has no effect on the direction of Taiwan Wtd i.e. Taiwan Wtd and Madrid Gnrl go up and down completely randomly.
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