This module allows you to analyze existing cross correlation between Hang Seng and CAC 40. You can compare the effects of market volatilities on Hang Seng and CAC 40 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 Hang Seng with a short position of CAC 40. See also your portfolio center. Please also check ongoing floating volatility patterns of Hang Seng and CAC 40.
|Time Horizon||30 Days Login to change|
Hang Seng vs. CAC 40
Given the investment horizon of 30 days, Hang Seng is expected to under-perform the CAC 40. In addition to that, Hang Seng is 1.78 times more volatile than CAC 40. It trades about -0.16 of its total potential returns per unit of risk. CAC 40 is currently generating about -0.22 per unit of volatility. If you would invest 560,711 in CAC 40 on May 20, 2018 and sell it today you would lose (21,648) from holding CAC 40 or give up 3.86% of portfolio value over 30 days.