Correlation Analysis Between CAC 40 and Hang Seng

This module allows you to analyze existing cross correlation between CAC 40 and Hang Seng. You can compare the effects of market volatilities on CAC 40 and Hang Seng 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 CAC 40 with a short position of Hang Seng. See also your portfolio center. Please also check ongoing floating volatility patterns of CAC 40 and Hang Seng.
Horizon     30 Days    Login   to change
Symbolsvs

CAC 40  vs.  Hang Seng

 Performance (%) 
      Timeline 

Pair Volatility

Assuming 30 trading days horizon, CAC 40 is expected to generate 0.63 times more return on investment than Hang Seng. However, CAC 40 is 1.59 times less risky than Hang Seng. It trades about -0.22 of its potential returns per unit of risk. Hang Seng is currently generating about -0.14 per unit of risk. If you would invest  535,257  in CAC 40 on September 15, 2018 and sell it today you would lose (26,698)  from holding CAC 40 or give up 4.99% of portfolio value over 30 days.

Pair Corralation between CAC 40 and Hang Seng

0.84
Time Period1 Month [change]
DirectionPositive 
StrengthStrong
Accuracy100.0%
ValuesDaily Returns

Diversification

Very poor diversification

Overlapping area represents the amount of risk that can be diversified away by holding CAC 40 and Hang Seng in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Hang Seng and CAC 40 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 CAC 40 are associated (or correlated) with Hang Seng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hang Seng has no effect on the direction of CAC 40 i.e. CAC 40 and Hang Seng go up and down completely randomly.
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Comparative Volatility

 Predicted Return Density 
      Returns 

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See also your portfolio center. Please also try Cryptocurrency Correlation module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins and exchanges.


 
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