Pair Correlation Between Madrid Gnrl and CAC 40

This module allows you to analyze existing cross correlation between Madrid Gnrl and CAC 40. You can compare the effects of market volatilities on Madrid Gnrl 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 Madrid Gnrl with a short position of CAC 40. See also your portfolio center. Please also check ongoing floating volatility patterns of Madrid Gnrl and CAC 40.
 Time Horizon     30 Days    Login   to change
 Madrid Gnrl  vs   CAC 40
 Performance (%) 

Pair Volatility

Assuming 30 trading days horizon, Madrid Gnrl is expected to under-perform the CAC 40. But the index apears to be less risky and, when comparing its historical volatility, Madrid Gnrl is 1.03 times less risky than CAC 40. The index trades about -0.21 of its potential returns per unit of risk. The CAC 40 is currently generating about -0.13 of returns per unit of risk over similar time horizon. If you would invest  530,217  in CAC 40 on February 21, 2018 and sell it today you would lose (13,496)  from holding CAC 40 or give up 2.55% of portfolio value over 30 days.

Correlation Coefficient

Pair Corralation between Madrid Gnrl and CAC 40


Time Period1 Month [change]
ValuesDaily Returns


Very weak diversification

Overlapping area represents the amount of risk that can be diversified away by holding Madrid Gnrl and CAC 40 in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on CAC 40 and Madrid Gnrl 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 Madrid Gnrl 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 Madrid Gnrl i.e. Madrid Gnrl and CAC 40 go up and down completely randomly.

Comparative Volatility

 Predicted Return Density