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 generate 0.74 times more return on investment than VMware. However, Oracle Corporation is 1.34 times less risky than VMware. It trades about -0.15 of its potential returns per unit of risk. VMware Inc is currently generating about -0.22 per unit of risk. If you would invest  3,979  in Oracle Corporation on July 29, 2015 and sell it today you would lose (233.00) from holding Oracle Corporation or give up 5.86% of portfolio value over 30 days.

Correlation Coefficient

0.14

Parameters

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

Diversification

Average 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

  

Risk-adjusted Performance

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

  

VMware Inc

  

Risk-adjusted Performance

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