Correlation Analysis Between CAC 40 and IBEX 35

This module allows you to analyze existing cross correlation between CAC 40 and IBEX 35. You can compare the effects of market volatilities on CAC 40 and IBEX 35 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 CAC 40 with a short position of IBEX 35. See also your portfolio center. Please also check ongoing floating volatility patterns of CAC 40 and IBEX 35.
Horizon     30 Days    Login   to change
Check Efficiency

Comparative Performance

 Predicted Return Density 

CAC 40  vs.  IBEX 35

 Performance (%) 

Pair Volatility

Assuming 30 trading days horizon, CAC 40 is expected to generate 1.15 times more return on investment than IBEX 35. However, CAC 40 is 1.15 times more volatile than IBEX 35. It trades about -0.1 of its potential returns per unit of risk. IBEX 35 is currently generating about -0.14 per unit of risk. If you would invest  556,309  in CAC 40 on May 17, 2019 and sell it today you would lose (20,348)  from holding CAC 40 or give up 3.66% of portfolio value over 30 days.

Pair Corralation between CAC 40 and IBEX 35

Time Period2 Months [change]
StrengthVery Strong
ValuesDaily Returns

Diversification Opportunities for CAC 40 and IBEX 35

CAC 40 diversification synergy

Almost no diversification

Overlapping area represents the amount of risk that can be diversified away by holding CAC 40 and IBEX 35 in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on IBEX 35 and CAC 40 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 CAC 40 are associated (or correlated) with IBEX 35. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IBEX 35 has no effect on the direction of CAC 40 i.e. CAC 40 and IBEX 35 go up and down completely randomly.
See also your portfolio center. Please also try Content Syndication module to quickly integrate customizable finance content to your own investment portal.