Correlation Analysis Between Invesco DWA and Taiwan Wtd

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

 Predicted Return Density 

Invesco DWA Technology Momentu  vs.  Taiwan Wtd

 Performance (%) 

Pair Volatility

Considering 30-days investment horizon, Invesco DWA Technology Momentum is expected to generate 2.09 times more return on investment than Taiwan Wtd. However, Invesco DWA is 2.09 times more volatile than Taiwan Wtd. It trades about 0.14 of its potential returns per unit of risk. Taiwan Wtd is currently generating about -0.04 per unit of risk. If you would invest  7,132  in Invesco DWA Technology Momentum on July 25, 2019 and sell it today you would earn a total of  712.00  from holding Invesco DWA Technology Momentum or generate 9.98% return on investment over 30 days.

Pair Corralation between Invesco DWA and Taiwan Wtd

Time Period2 Months [change]
ValuesDaily Returns

Diversification Opportunities for Invesco DWA and Taiwan Wtd

Invesco DWA Technology Momentu diversification synergy

Average diversification

Overlapping area represents the amount of risk that can be diversified away by holding Invesco DWA Technology Momentu and Taiwan Wtd in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Taiwan Wtd and Invesco DWA 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 Invesco DWA Technology Momentum 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 Invesco DWA i.e. Invesco DWA and Taiwan Wtd go up and down completely randomly.
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