Asset Comparison and Correlation

Given investment horizon of 30 days, Oracle Corporation is expected to under-perform the Salesforce. But the stock apears to be less risky and, when comparing its historical volatility, Oracle Corporation is 2.24 times less risky than Salesforce. The stock trades about -0.32 of its potential returns per unit of risk. The Salesforce.com is currently generating about -0.07 of returns per unit of risk over similar time horizon. If you would invest 15,666 in Salesforce.com on April 26, 2012 and sell it today you would lose (966) from holding Salesforce.com or give up 6.17% of portfolio value over 30 days.