Correlation Analysis Between Shanghai and CAC 40

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.
Horizon     30 Days    Login   to change

Shanghai  vs.  CAC 40

 Performance (%) 

Pair Volatility

Assuming 30 trading days horizon, Shanghai is expected to generate 1.37 times more return on investment than CAC 40. However, Shanghai is 1.37 times more volatile than CAC 40. It trades about 0.09 of its potential returns per unit of risk. CAC 40 is currently generating about -0.02 per unit of risk. If you would invest  257,008  in Shanghai on October 15, 2018 and sell it today you would earn a total of  6,216  from holding Shanghai or generate 2.42% return on investment over 30 days.

Pair Corralation between Shanghai and CAC 40

Time Period1 Month [change]
ValuesDaily Returns


Shanghai diversification synergy

Significant diversification

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

Comparative Volatility

 Predicted Return Density 

My Equities

My Current Equities and Potential Positions

View AllNext
GOOG - USA Stock
IT, Search Cloud And Integrated IT Services
Business Address1600 Amphitheatre Parkway

Thematic Opportunities

Explore Investment Opportunities

Build portfolios using Macroaxis predefined set of investing ideas. Many of Macroaxis investing ideas can easily outperform a given market. Ideas can also be optimized per your risk profile before portfolio origination is invoked.
Explore Thematic Ideas
Explore Investing Ideas  
See also your portfolio center. Please also try Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.