Benchmark  United States  NYSE  10,918   36.4131  0.3346% 


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Correlation analysis between VMware and Salesforce

    
  
Summary
Performance
FundamentalsTechnicalsRecomendation
   Valuation
   Backtest
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Investment horizon:  
  30 Days    Login   to change
  
This module allows you to analyze existing cross correlation between VMware Inc and Salesforce Inc. You can compare the effects of market volatilities on VMware and Salesforce 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 VMware with a short position of Salesforce. Please also check ongoing floating volatility patterns of VMware and Salesforce.
 VMware Inc.  vs   Salesforce.com Inc
Daily Returns (%)
VMW   CRM   
Benchmark  Embed   Timeline 
Considering 30-days investment horizon, VMware Inc is expected to generate 1.05 times more return on investment than Salesforce. However, VMware is 1.05 times more volatile than Salesforce Inc. It trades about 0.17 of its potential returns per unit of risk. Salesforce Inc is currently generating about 0.15 per unit of risk. If you would invest  8,486  in VMware Inc on July 1, 2015 and sell it today you would earn a total of  418.00  from holding VMware Inc or generate 4.93% return on investment over 30 days.

Correlation Coefficient

0.2

Parameters

Time Period1 Month [change]
DirectionPositive CRM Moved Up vs VMW
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Diversification

Modest diversification

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

Historical Performance Chart

Comparative Volatility

Predicted Return Density  
Benchmark  Embed   Returns 

VMware Inc

  

Risk-adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in VMware Inc are ranked lower than 11 (%) of all global equities and portfolios over the last 30 days.
  

Salesforce Inc

  

Risk-adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Salesforce Inc are ranked lower than 9 (%) of all global equities and portfolios over the last 30 days.

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