This module allows you to analyze existing cross correlation between CAC 40 and Taiwan Wtd. You can compare the effects of market volatilities on CAC 40 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 CAC 40 with a short position of Taiwan Wtd. See also your portfolio center. Please also check ongoing floating volatility patterns of CAC 40 and Taiwan Wtd.
|Time Horizon||30 Days Login to change|
Assuming 30 trading days horizon, CAC 40 is expected to generate 0.64 times more return on investment than Taiwan Wtd. However, CAC 40 is 1.56 times less risky than Taiwan Wtd. It trades about -0.15 of its potential returns per unit of risk. Taiwan Wtd is currently generating about -0.11 per unit of risk. If you would invest 552,915 in CAC 40 on January 26, 2018 and sell it today you would lose (21,178) from holding CAC 40 or give up 3.83% of portfolio value over 30 days.