Pair Correlation Between VMware Inc and Salesforce

  
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 Inc 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 Inc with a short position of Salesforce. Please also check ongoing floating volatility patterns of VMware Inc 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 0.75 times more return on investment than Salesforce. However, VMware Inc is 1.34 times less risky than Salesforce. It trades about -0.34 of its potential returns per unit of risk. salesforce inc is currently generating about -0.29 per unit of risk. If you would invest  5,452  in VMware Inc on January 7, 2016 and sell it today you would lose (998.00) from holding VMware Inc or give up 18.31% of portfolio value over 30 days.

Correlation Coefficient

0.34

Parameters

Time Period1 Month [change]
DirectionPositive 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns
  

Diversification

Weak 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

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 Inc

  

salesforce inc

  

Risk-adjusted Performance

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

Pair trading matchups for Salesforce