Correlation Analysis Between Square and Taiwan Wtd

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

Comparative Performance

 Predicted Return Density 

Square Inc  vs.  Taiwan Wtd

 Performance (%) 

Pair Volatility

Allowing for the 30-days total investment horizon, Square is expected to under-perform the Taiwan Wtd. In addition to that, Square is 3.97 times more volatile than Taiwan Wtd. It trades about -0.12 of its total potential returns per unit of risk. Taiwan Wtd is currently generating about 0.02 per unit of volatility. If you would invest  1,080,377  in Taiwan Wtd on August 19, 2019 and sell it today you would earn a total of  7,073  from holding Taiwan Wtd or generate 0.65% return on investment over 30 days.

Pair Corralation between Square and Taiwan Wtd

Time Period3 Months [change]
ValuesDaily Returns

Diversification Opportunities for Square and Taiwan Wtd

Square Inc diversification synergy

Poor diversification

Overlapping area represents the amount of risk that can be diversified away by holding Square Inc and Taiwan Wtd in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Taiwan Wtd and Square 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 Square 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 Square i.e. Square and Taiwan Wtd go up and down completely randomly.
See also your portfolio center. Please also try Volatility Analysis module to get historical volatility and risk analysis based on latest market data.