Pair Correlation Between ISEQ and CAC 40

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
Symbolsvs

ISEQ  vs.  CAC 40

 Performance (%) 
      Timeline 

Pair Volatility

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.

Pair Corralation between ISEQ and CAC 40

0.86
Time Period2 Months [change]
DirectionPositive 
StrengthStrong
Accuracy97.96%
ValuesDaily Returns

Diversification

Very poor diversification

Overlapping area represents the amount of risk that can be diversified away by holding ISEQ and CAC 40 in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on CAC 40 and ISEQ is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on ISEQ are associated (or correlated) with CAC 40. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CAC 40 has no effect on the direction of ISEQ i.e. ISEQ and CAC 40 go up and down completely randomly.
    Optimize

Comparative Volatility

 Predicted Return Density 
      Returns 

My Equities

My Current Equities and Potential Positions
View AllNext
GOOG - USA Stock
Alphabet
Specialization
IT, Search Cloud And Integrated IT Services
Business Address1600 Amphitheatre Parkway
ExchangeNASDAQ
$1039.34

Thematic Opportunities

Explore Investment Opportunities
Build portfolios using Macroaxis predefined set of investing ideas. Many of Macroaxis investing ideas can easily outperform a given market. Ideas can also be optimized per your risk profile before portfolio origination is invoked.
Explore Thematic Ideas
Explore Investing Ideas  
See also your portfolio center. Please also try Equity Search module to search for activelly-traded equities including funds and etfs from over 30 global markets.