- Companies in United States
- Peer Analysis
This module allows you to analyze existing cross correlation between Seoul Comp and CAC 40. You can compare the effects of market volatilities on Seoul Comp 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 Seoul Comp with a short position of CAC 40. See also your portfolio center. Please also check ongoing floating volatility patterns of Seoul Comp and CAC 40.
|Horizon||30 Days Login to change|
Predicted Return Density
Seoul Comp vs. CAC 40
Assuming 30 trading days horizon, Seoul Comp is expected to under-perform the CAC 40. In addition to that, Seoul Comp is 1.03 times more volatile than CAC 40. It trades about -0.08 of its total potential returns per unit of risk. CAC 40 is currently generating about -0.07 per unit of volatility. If you would invest 508,559 in CAC 40 on November 14, 2018 and sell it today you would lose (20,119) from holding CAC 40 or give up 3.96% of portfolio value over 30 days.
Pair Corralation between Seoul Comp and CAC 40
|Time Period||2 Months [change]|
Diversification Opportunities for Seoul Comp and CAC 40
Overlapping area represents the amount of risk that can be diversified away by holding Seoul Comp and CAC 40 in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on CAC 40 and Seoul Comp 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 Seoul Comp 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 Seoul Comp i.e. Seoul Comp and CAC 40 go up and down completely randomly.