This module allows you to analyze existing cross correlation between IBEX 35 and CAC 40. You can compare the effects of market volatilities on IBEX 35 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 IBEX 35 with a short position of CAC 40. See also your portfolio center. Please also check ongoing floating volatility patterns of IBEX 35 and CAC 40.
|Time Horizon||30 Days Login to change|
Assuming 30 trading days horizon, IBEX 35 is expected to under-perform the CAC 40. But the index apears to be less risky and, when comparing its historical volatility, IBEX 35 is 1.01 times less risky than CAC 40. The index trades about -0.3 of its potential returns per unit of risk. The CAC 40 is currently generating about -0.19 of returns per unit of risk over similar time horizon. If you would invest 554,199 in CAC 40 on January 20, 2018 and sell it today you would lose (26,041) from holding CAC 40 or give up 4.7% of portfolio value over 30 days.