This module allows you to analyze existing cross correlation between CAC 40 and FTSE MIB. You can compare the effects of market volatilities on CAC 40 and FTSE MIB 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 FTSE MIB. See also your portfolio center. Please also check ongoing floating volatility patterns of CAC 40 and FTSE MIB.
|Investment Horizon||30 Days Login to change|
Assuming 30 trading days horizon, CAC 40 is expected to under-perform the FTSE MIB. But the index apears to be less risky and, when comparing its historical volatility, CAC 40 is 1.26 times less risky than FTSE MIB. The index trades about -0.07 of its potential returns per unit of risk. The FTSE MIB is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 2,213,321 in FTSE MIB on October 19, 2017 and sell it today you would earn a total of 7,339 from holding FTSE MIB or generate 0.33% return on investment over 30 days.