- Companies in United States
- Peer Analysis
This module allows you to analyze existing cross correlation between DAX and CAC 40. You can compare the effects of market volatilities on DAX 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 DAX with a short position of CAC 40. See also your portfolio center. Please also check ongoing floating volatility patterns of DAX and CAC 40.
|Horizon||30 Days Login to change|
Predicted Return Density
DAX vs. CAC 40
Assuming 30 trading days horizon, DAX is expected to generate 1.42 times less return on investment than CAC 40. In addition to that, DAX is 1.08 times more volatile than CAC 40. It trades about 0.15 of its total potential returns per unit of risk. CAC 40 is currently generating about 0.23 per unit of volatility. If you would invest 466,894 in CAC 40 on January 20, 2019 and sell it today you would earn a total of 49,158 from holding CAC 40 or generate 10.53% return on investment over 30 days.
Pair Corralation between DAX and CAC 40
|Time Period||2 Months [change]|
Diversification Opportunities for DAX and CAC 40
Very poor diversification
Overlapping area represents the amount of risk that can be diversified away by holding DAX and CAC 40 in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on CAC 40 and DAX 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 DAX 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 DAX i.e. DAX and CAC 40 go up and down completely randomly.