This module allows you to analyze existing cross correlation between AEX Amsterdam and CAC 40. You can compare the effects of market volatilities on AEX Amsterdam and CAC 40 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 AEX Amsterdam with a short position of CAC 40. See also your portfolio center. Please also check ongoing floating volatility patterns of AEX Amsterdam and CAC 40.
|Time Horizon||30 Days Login to change|
Given the investment horizon of 30 days, AEX Amsterdam is expected to under-perform the CAC 40. In addition to that, AEX Amsterdam is 6.54 times more volatile than CAC 40. It trades about -0.23 of its total potential returns per unit of risk. CAC 40 is currently generating about -0.12 per unit of volatility. If you would invest 548,121 in CAC 40 on January 25, 2018 and sell it today you would lose (16,384) from holding CAC 40 or give up 2.99% of portfolio value over 30 days.