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|
IBEX 35 vs. CAC 40
Assuming 30 trading days horizon, IBEX 35 is expected to generate 1.57 times more return on investment than CAC 40. However, IBEX 35 is 1.57 times more volatile than CAC 40. It trades about -0.06 of its potential returns per unit of risk. CAC 40 is currently generating about -0.22 per unit of risk. If you would invest 976,440 in IBEX 35 on May 26, 2018 and sell it today you would lose (14,650) from holding IBEX 35 or give up 1.5% of portfolio value over 30 days.