Macroaxis: Personalized Investing

Personalized Investing and

Digital Wealth Optimization

Benchmark  United States  NYSE  10,875   9.9912 Index Moved Up 0.092%  


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Collecting data for ORCL and VMW ...

Correlation analysis between Oracle and VMware  

    
Investment horizon:  
  30 Days    Login   to change
  
This module allows you to analyze existing cross correlation between Oracle Corporation and VMware Inc. You can compare the effects of market volatilities on Oracle and VMware 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 Oracle with a short position of VMware. Please also check ongoing floating volatility patterns of Oracle and VMware.
 Oracle Corp.  vs   VMware Inc.
Daily Returns (%)
VMW   ORCL   
Benchmark  Embed   Timeline 
Given the investment horizon of 30 days, Oracle Corporation is expected to under-perform the VMware. In addition to that, Oracle is 1.14 times more volatile than VMware Inc. It trades about -0.08 of its total potential returns per unit of risk. VMware Inc is currently generating about -0.08 per unit of volatility. If you would invest  8,398  in VMware Inc on February 26, 2015 and sell it today you would lose (192.00) from holding VMware Inc or give up 2.29% of portfolio value over 30 days.

Correlation Coefficient

0.54

Parameters

Time Period1 Month [change]
DirectionPositive VMW Moved Up vs ORCL
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Diversification

Very weak diversification

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

Historical Performance Chart

Comparative Volatility

Predicted Return Density  
Benchmark  Embed   Returns 

Oracle

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

Pair trading matchups for Oracle

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VMware Inc

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

Pair trading matchups for VMware

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