Pair Correlation Between FTSE MIB and CAC 40

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

Pair Volatility

If you would invest  525,618  in CAC 40 on February 18, 2018 and sell it today you would earn a total of  2,657  from holding CAC 40 or generate 0.51% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between FTSE MIB and CAC 40


Time Period1 Month [change]
ValuesDaily Returns


Good diversification

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

Comparative Volatility

 Predicted Return Density