Pair Correlation Between HCP Inc and VMware Inc

Investment Horizon     30 Days    Login   to change
This module allows you to analyze existing cross correlation between HCP Inc and VMware Inc. You can compare the effects of market volatilities on HCP Inc and VMware Inc 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 HCP Inc with a short position of VMware Inc. Please also check ongoing floating volatility patterns of HCP Inc and VMware Inc.
 HCP Inc.  vs   VMware Inc.
Daily Returns (%)
HCP   VMW   
Benchmark  Embed   Timeline 
Considering 30-days investment horizon, HCP Inc is expected to under-perform the VMware Inc. But the stock apears to be less risky and, when comparing its historical volatility, HCP Inc is 1.11 times less risky than VMware Inc. The stock trades about -0.2 of its potential returns per unit of risk. The VMware Inc is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest  5,864  in VMware Inc on October 27, 2015 and sell it today you would earn a total of  131.00  from holding VMware Inc or generate 2.23% return on investment over 30 days.

Correlation Coefficient



Time Period1 Month [change]
DirectionNegative HCP Moved Down vs VMW
ValuesDaily Returns


Good diversification

Overlapping area represents amount of risk that can be diversified away by holding HCP Inc. and VMware Inc. in the same portfolio assuming nothing else is changed

Historical Performance Chart

Comparative Volatility

Predicted Return Density  
Benchmark  Embed   Returns 



Risk-adjusted Performance

Over the last 30 days HCP Inc has generated negative risk-adjusted returns adding no value to investors with long positions.

Pair trading matchups for HCP Inc


VMware Inc


Risk-adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in VMware Inc are ranked lower than 4 (%) of all global equities and portfolios over the last 30 days.

Pair trading matchups for VMware Inc