CAC 40 vs DAX
Live side-by-side comparison with current values, changes, and key statistics.
Why This Comparison Matters
CAC is luxury and industrial-heavy (LVMH, Total, Airbus) while DAX is pure industrial and auto (Siemens, VW). CAC outperformance reflects strong global luxury demand and aerospace strength. DAX outperformance aligns with global manufacturing cycles, China demand, and German auto recovery.
Cross-Asset Analysis
Before getting to the spread, note what each leg actually represents: CAC 40 is CAC 40 index, the French large-cap equity benchmark, and DAX 40 is DAX 40 index, the German large-cap equity benchmark. The CAC 40-DAX 40 spread captures the tilt between two variants of the same asset: one may be more defensive, one more cyclical. Interest rate cycles drive CAC 40 versus DAX 40 relative performance through discount-rate sensitivity, with longer-duration exposures suffering more when rates rise.
Idiosyncratic events in a concentrated peer, such as a single mega-cap earnings miss inside CAC 40, can move the CAC 40-DAX 40 spread without broader factor signal. Inside the EU/UK Equity universe, CAC 40 and DAX 40 represent different flavors of the same underlying exposure. Late-cycle environments force CAC 40 and DAX 40 to express their respective defensive and cyclical tilts more sharply, making the spread a useful regime tell.
CAC 40 and DAX 40 occupy the same asset class, and the relative performance between them isolates the specific factor that distinguishes one from the other. Overlay strategies trade the CAC 40-DAX 40 spread through options or swaps when the underlying pair is directly tradable, sizing against realized spread volatility.
90-Day Statistics
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Frequently Asked Questions
What is the relationship between CAC 40 and DAX 40?+
CAC 40 and DAX 40 are connected through shared asset class exposure with different factor tilts. When the underlying asset class shifts, both respond, though with different sensitivities and at different speeds. The spread between CAC 40 and DAX 40 captures the specific macro signal that flows through this relationship.
When does CAC 40 typically lead DAX 40?+
CAC 40 tends to lead DAX 40 during rotation episodes between the two factor exposures. In those periods, moves in CAC 40 precede corresponding moves in DAX 40 by days to weeks, depending on the transmission channel and the depth of each market.
How are CAC 40 and DAX 40 historically correlated?+
Long-run correlation between CAC 40 and DAX 40 varies by regime. Peers in the same asset class are highly correlated in direction, with the spread reflecting factor tilts and rotation dynamics. The correlation is not stable: it shifts with macro conditions, and the periods when it breaks down are often the most informative moments in the CAC 40-DAX 40 relationship.
What macro conditions drive divergence between CAC 40 and DAX 40?+
Divergence between CAC 40 and DAX 40 typically arises from index reconstitution, mega-cap earnings surprises, or liquidity differences between the peers. When one asset's idiosyncratic drivers dominate, the spread moves in ways that the common macro story does not predict, which is usually a signal to look more carefully at the specific drivers at work in CAC 40 or DAX 40.
Is CAC 40 a hedge for DAX 40?+
Peers like CAC 40 and DAX 40 do not hedge each other; both rise or fall with the shared asset class, and using the pair as a spread trade is different from using it as a hedge. Effective hedging requires matching the hedge to the specific risk being protected, and the CAC 40-DAX 40 pair is best stress-tested under scenarios the investor most worries about before being sized into a real portfolio.
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Data sourced from FRED, CoinGecko, CBOE, and other providers. This page is for informational purposes only and does not constitute financial advice. Past performance does not guarantee future results.