This module allows you to analyze existing cross correlation between CAC 40 and NQFI. You can compare the effects of market volatilities on CAC 40 and NQFI 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 NQFI. See also your portfolio center. Please also check ongoing floating volatility patterns of CAC 40 and NQFI.
|Horizon||30 Days Login to change|
Predicted Return Density
CAC 40 vs. NQFI
Assuming 30 trading days horizon, CAC 40 is expected to generate 0.88 times more return on investment than NQFI. However, CAC 40 is 1.14 times less risky than NQFI. It trades about -0.1 of its potential returns per unit of risk. NQFI is currently generating about -0.16 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 NQFI
|Time Period||2 Months [change]|
Diversification Opportunities for CAC 40 and NQFI
Very poor diversification
Overlapping area represents the amount of risk that can be diversified away by holding CAC 40 and NQFI in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on NQFI 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 NQFI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NQFI has no effect on the direction of CAC 40 i.e. CAC 40 and NQFI go up and down completely randomly.
See also your portfolio center. Please also try Technical Analysis module to check basic technical indicators and analysis based on most latest market data.