This module allows you to analyze existing cross correlation between Shanghai and CAC 40. You can compare the effects of market volatilities on Shanghai 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 Shanghai with a short position of CAC 40. See also your portfolio center. Please also check ongoing floating volatility patterns of Shanghai and CAC 40.
|Time Horizon||30 Days Login to change|
Shanghai vs. CAC 40
Assuming 30 trading days horizon, Shanghai is expected to under-perform the CAC 40. In addition to that, Shanghai is 1.43 times more volatile than CAC 40. It trades about -0.07 of its total potential returns per unit of risk. CAC 40 is currently generating about 0.06 per unit of volatility. If you would invest 531,737 in CAC 40 on March 26, 2018 and sell it today you would earn a total of 12,118 from holding CAC 40 or generate 2.28% return on investment over 30 days.