Correlation Analysis Between CAC 40 and NIKKEI 225

This module allows you to analyze existing cross correlation between CAC 40 and NIKKEI 225. You can compare the effects of market volatilities on CAC 40 and NIKKEI 225 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 NIKKEI 225. See also your portfolio center. Please also check ongoing floating volatility patterns of CAC 40 and NIKKEI 225.
Horizon     30 Days    Login   to change

CAC 40  vs.  NIKKEI 225

 Performance (%) 

Pair Volatility

Assuming 30 trading days horizon, CAC 40 is expected to generate 0.8 times more return on investment than NIKKEI 225. However, CAC 40 is 1.26 times less risky than NIKKEI 225. It trades about -0.07 of its potential returns per unit of risk. NIKKEI 225 is currently generating about -0.06 per unit of risk. If you would invest  508,559  in CAC 40 on November 12, 2018 and sell it today you would lose (17,614)  from holding CAC 40 or give up 3.46% of portfolio value over 30 days.

Pair Corralation between CAC 40 and NIKKEI 225

Time Period2 Months [change]
ValuesDaily Returns


CAC 40 diversification synergy

Very weak diversification

Overlapping area represents the amount of risk that can be diversified away by holding CAC 40 and NIKKEI 225 in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on NIKKEI 225 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 NIKKEI 225. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NIKKEI 225 has no effect on the direction of CAC 40 i.e. CAC 40 and NIKKEI 225 go up and down completely randomly.

Comparative Volatility

 Predicted Return Density 

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See also your portfolio center. Please also try Piotroski F Score module to get piotroski f score based on binary analysis strategy of nine different fundamentals.