This module allows you to analyze existing cross correlation between ISEQ and CAC 40. You can compare the effects of market volatilities on ISEQ 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 ISEQ with a short position of CAC 40. See also your portfolio center. Please also check ongoing floating volatility patterns of ISEQ and CAC 40.
|Time Horizon||30 Days Login to change|
ISEQ vs. CAC 40
Assuming 30 trading days horizon, ISEQ is expected to generate 5.24 times less return on investment than CAC 40. But when comparing it to its historical volatility, ISEQ is 1.2 times less risky than CAC 40. It trades about 0.01 of its potential returns per unit of risk. CAC 40 is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 534,426 in CAC 40 on March 27, 2018 and sell it today you would earn a total of 9,990 from holding CAC 40 or generate 1.87% return on investment over 30 days.