This module allows you to analyze existing cross correlation between NYSE and CAC 40. You can compare the effects of market volatilities on NYSE 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 NYSE with a short position of CAC 40. See also your portfolio center. Please also check ongoing floating volatility patterns of NYSE and CAC 40.
|Investment Horizon||30 Days Login to change|
Given the investment horizon of 30 days, NYSE is expected to under-perform the CAC 40. But the index apears to be less risky and, when comparing its historical volatility, NYSE is 1.91 times less risky than CAC 40. The index trades about -0.16 of its potential returns per unit of risk. The CAC 40 is currently generating about -0.08 of returns per unit of risk over similar time horizon. If you would invest 537,238 in CAC 40 on October 20, 2017 and sell it today you would lose (5,321) from holding CAC 40 or give up 0.99% of portfolio value over 30 days.