CAC 40 (France) Performance

C4
FCHI -- France Index  

 4,970  49.47  1.01%

The entity owns a Beta (Systematic Risk) of 0.0, which signifies not very significant fluctuations relative to the market. Let's try to break down what CAC 40's beta means in this case. the returns on MARKET and CAC 40 are completely uncorrelated. Although it is extremely important to respect CAC 40 existing price patterns, it is better to be realistic regarding the information on equity price patterns. The approach to foreseeing future performance of any index is to evaluate the business as a whole together with its past performance, including all available fundamental and technical indicators. By examining CAC 40 technical indicators, you can at this time evaluate if the expected return of 0.17% will be sustainable into the future.

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CAC 40 Relative Risk vs. Return Landscape

If you would invest  450,685  in CAC 40 on June 11, 2020 and sell it today you would earn a total of  46,363  from holding CAC 40 or generate 10.29% return on investment over 30 days. CAC 40 is currently producing 0.1741% returns and takes up 1.9455% volatility of returns over 30 trading days. Put another way, 16% of traded equities are less volatile than the company and 97% of traded equity instruments are likely to generate higher returns over the next 30 trading days.
 Daily Expected Return (%) 
      Risk (%) 
Assuming the 30 trading days horizon, CAC 40 is expected to generate 1.09 times less return on investment than the market. In addition to that, the company is 1.07 times more volatile than its market benchmark. It trades about 0.09 of its total potential returns per unit of risk. The DOW is currently generating roughly 0.1 per unit of volatility.

CAC 40 Market Risk Analysis

Sharpe Ratio = 0.0895
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CAC 40 Performance Indicators

Estimated Market Risk
 1.95
  actual daily
 
 17 %
of total potential
 
1717
Expected Return
 0.17
  actual daily
 
 3 %
of total potential
 
33
Risk-Adjusted Return
 0.09
  actual daily
 
 6 %
of total potential
 
66
Based on monthly moving average CAC 40 is performing at about 6% of its full potential. If added to a well diversified portfolio the total return can be enhanced and market risk can be reduced. You can increase risk-adjusted return of CAC 40 by adding it to a well-diversified portfolio.

About CAC 40 Performance

To evaluate CAC 40 Index as a possible investment, you need to clearly understand its upside, downside potential, and overall future performance outlook. You may be satisfied when CAC 40 generates a 15% return over the last few months, but what if the market is generating 25% over the same period? In this case, it makes sense to compare CAC 40's stock performance with different market indexes, such as the Dow or NASDAQ Composite. These indexes can act as benchmarks that will help you to understand CAC 40 stock market performance in a much more refined way. At Macroaxis, we take it even further. The Macroaxis performance score is an integer between 0 and 100 that represents CAC 40's market performance from a risk-adjusted return perspective. Generally speaking, the higher the score, the better is overall performance as compared to other investors. The score is normalized against the average investing universe (the best we can interpret from the data available). Within this methodology, scores of individual equity instruments will always be inferior to the scores of portfolios of equities as portfolios typically diversify a lot of unsystematic risks away. The formula to derive the Macroaxis score bases on multiple unequally-weighted factors. For more information, refer to our portfolio performance evaluation section. Please also refer to our technical analysis and fundamental analysis pages.
Macroaxis is not a registered investment advisor or broker/dealer. All investments, including stocks, funds, ETFs, or cryptocurrencies, are speculative and involve substantial risk of loss. We encourage our investors to invest carefully. Much of our information is derived directly from data published by companies or submitted to governmental agencies which we believe are reliable, but are without our independent verification. Therefore, we cannot assure you that the information is accurate or complete. We do not in any way warrant or guarantee the success of any action you take in reliance on our statements or recommendations. Also, note that past performance is not necessarily indicative of future results. All investments carry risk, and all investment decisions of an individual remain the responsibility of that individual. There is no guarantee that systems, indicators, or signals will result in profits or that they will not result in losses. All investors are advised to fully understand all risks associated with any investing they choose to do. Hypothetical or simulated performance is not indicative of future results. We make no representations or warranties that any investor will, or is likely to, achieve profits similar to those shown because hypothetical or simulated performance is not necessarily indicative of future results. For more information please visit our terms and condition page