Asset Comparison and Correlation

Considering 30-days investment horizon, Merck Co Inc is expected to under-perform the Microsoft. But the stock apears to be less risky and, when comparing its historical volatility, Merck Co Inc is 1.29 times less risky than Microsoft. The stock trades about -0.13 of its potential returns per unit of risk. The Microsoft Corporation is currently generating about 0.52 of returns per unit of risk over similar time horizon. If you would invest  3,083  in Microsoft Corporation on April 19, 2013 and sell it today you would earn a total of  404.00  from holding Microsoft Corporation or generate 13.1% return on investment over 30 days.