This module allows you to analyze existing cross correlation between NZSE and CAC 40. You can compare the effects of market volatilities on NZSE 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 NZSE with a short position of CAC 40. See also your portfolio center. Please also check ongoing floating volatility patterns of NZSE and CAC 40.
|Time Horizon||30 Days Login to change|
Assuming 30 trading days horizon, NZSE is expected to generate 0.82 times more return on investment than CAC 40. However, NZSE is 1.22 times less risky than CAC 40. It trades about -0.02 of its potential returns per unit of risk. CAC 40 is currently generating about -0.15 per unit of risk. If you would invest 834,750 in NZSE on January 26, 2018 and sell it today you would lose (4,578) from holding NZSE or give up 0.55% of portfolio value over 30 days.