CAC

CAC 40, which stands for Cotation Assistée en Continu, or "continuous assisted trading," is a benchmark index for funds that trade in the French stock market.

The CAC 40 is a French stock market index that measures the top 40 French stocks based on their Euronext Paris market capitalisation.
 

The top ten performers will be weighted at 3.5%, the next ten at 3%, and the next ten at 2%, with the remaining elements weighted at 1.5%. If there are less than 40 components, the percentages will be increased in the same proportion.

From February 1991 to January 2024, the CAC 40 index (in EUR) had a compound annual growth rate of 7.85%, a standard deviation of 18.09%, and a Sharpe ratio of 0.44.
 

The CAC 40 comprises France's top 40 publicly traded companies. It includes giants like Pernod Ricard (RI), Publicis Groupe SA (PUB), Renault S.A. (RNO), and Safran SA (SAF).

The current CAC 40 Sharpe ratio is 0.43. A Sharpe ratio of 0 to 1.0 is considered sub-optimal.

There are several ways to trade the CAC 40, the most prevalent being derivatives such as CFDs, futures and options, and ETFs. All of these instruments allow you to have exposure to all 50 firms from a single investment.

The CAC 40 performance is influenced by various factors including economic indicators, geopolitical events, interest rates, and company earnings reports.

Yes, the CAC 40 is influenced by global market trends, particularly those in Europe and major international markets like the US and Asia.