CAC 40 (France) Alpha and Beta Analysis

FCHI
 Index
  

 5,762  85.47  1.51%   

This module allows you to check different measures of market premium (i.e., alpha and beta) for all equities such as CAC 40. It also helps investors analyze the systematic and unsystematic risks associated with investing in CAC 40 over a specified time horizon. Remember, high CAC 40's alpha is almost always a sign of good performance; however, a high beta will depend on investors' risk tolerance level and may signal increased volatility and potential future overvaluation.
Check out CAC 40 Backtesting, Portfolio Optimization, CAC 40 Correlation, CAC 40 Hype Analysis, CAC 40 Volatility, CAC 40 History and analyze CAC 40 Performance.
Please note that although CAC 40 alpha is a measure of relative return and represented here as a single number, it indicates the percentage above or below your selected benchmark (i.e., DOW index.) So in this particular case, CAC 40 did 0.00  better than the index. Remember, a high alpha is always good. Beta, on the other hand, measures the volatility (or risk) of an investment. It is an indication of CAC 40 index's relative risk over its benchmark. CAC 40 has a beta of 0.00  . Let's try to break down what CAC 40's beta means in this case. The returns on DOW and CAC 40 are completely uncorrelated.
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Alpha is a measure of relative performance on a risk-adjusted basis, while beta measures volatility against the benchmark. The goal is to know if an investor is being compensated for the volatility risk taken. The return on investment might be better than its reference but still not compensate for the assumption of the risk.

CAC 40 Market Premiums

Investors always prefer to have the highest possible return on investment, coupled with the lowest possible volatility. CAC 40 market risk premium is the additional return an investor will receive from holding CAC 40 long position in a well-diversified portfolio. The market premium is part of the Capital Asset Pricing Model (CAPM), which most analysts and investors use to calculate the acceptable rate of return on investment in CAC 40. At the center of the CAPM is the concept of risk and reward, which is usually communicated by investors using alpha and beta measures. Alpha and beta are two of the key measurements used to evaluate CAC 40's performance over market.
α0.00   β0.00
90 days against DJI

CAC 40 Fundamentals

CAC 40 Market Price Analysis

Market price analysis indicators help investors to evaluate how CAC 40 index reacts to ongoing and evolving market conditions. The investors can use it to make informed decisions about market timing, and determine when trading CAC 40 shares will generate the highest return on investment. By understating and applying CAC 40 index market price indicators, traders can identify CAC 40 position entry and exit signals to maximize returns.

CAC 40 Return and Market Media

The median price of CAC 40 for the period between Sat, Jul 2, 2022 and Fri, Sep 30, 2022 is 6201.22 with a coefficient of variation of 3.96. The daily time series for the period is distributed with a sample standard deviation of 245.06, arithmetic mean of 6186.82, and mean deviation of 202.33. The Index did not receive any noticable media coverage during the period.
 Price Growth (%)  
       Timeline  

About CAC 40 Beta and Alpha

For many years both, Alpha and Beta indicators are used by professional money managers as critical performance measurement tools across virtually all financial instruments including CAC 40 or other indexs. Alpha measures the amount that position in CAC 40 has returned in comparison to a selected market index or another relevant benchmark. In other words, Alpha is the excess return on an investment relative to the performance of your selected benchmark. Beta, on the other hand, measures the relative risk of your investment.
Some investors attempt to determine whether the market's mood is bullish or bearish by monitoring changes in market sentiment. Unlike more traditional methods such as technical analysis, investor sentiment usually refers to the aggregate attitude towards CAC 40 in the overall investment community. So, suppose investors can accurately measure the market's sentiment. In that case, they can use it for their benefit. For example, some tools to gauge market sentiment could be utilized using contrarian indexes, CAC 40's short interest history, or implied volatility extrapolated from CAC 40 options trading.

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Check out CAC 40 Backtesting, Portfolio Optimization, CAC 40 Correlation, CAC 40 Hype Analysis, CAC 40 Volatility, CAC 40 History and analyze CAC 40 Performance. Note that the CAC 40 information on this page should be used as a complementary analysis to other CAC 40's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Price Transformation module to use Price Transformation models to analyze depth of different equity instruments across global markets.

Other Tools for CAC 40 Index

When running CAC 40 price analysis, check to measure CAC 40's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy CAC 40 is operating at the current time. Most of CAC 40's value examination focuses on studying past and present price action to predict the probability of CAC 40's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move CAC 40's price. Additionally, you may evaluate how the addition of CAC 40 to your portfolios can decrease your overall portfolio volatility.
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