This module allows you to analyze existing cross correlation between CAC 40 and IBEX 35. You can compare the effects of market volatilities on CAC 40 and IBEX 35 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 IBEX 35. See also your portfolio center. Please also check ongoing floating volatility patterns of CAC 40 and IBEX 35.
|Time Horizon||30 Days Login to change|
CAC 40 vs. IBEX 35
Assuming 30 trading days horizon, CAC 40 is expected to under-perform the IBEX 35. But the index apears to be less risky and, when comparing its historical volatility, CAC 40 is 1.87 times less risky than IBEX 35. The index trades about -0.3 of its potential returns per unit of risk. The IBEX 35 is currently generating about -0.12 of returns per unit of risk over similar time horizon. If you would invest 1,013,880 in IBEX 35 on May 22, 2018 and sell it today you would lose (39,360) from holding IBEX 35 or give up 3.88% of portfolio value over 30 days.