This module allows you to analyze existing cross correlation between VMware Inc and Salesforce com 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. See also your portfolio center
. Please also check ongoing floating volatility patterns of VMware
VMware Inc vs Salesforce com inc
Considering 30-days investment horizon, VMware is expected to generate 2.12 times less return on investment than Salesforce. But when comparing it to its historical volatility, VMware Inc is 1.14 times less risky than Salesforce. It trades about 0.26 of its potential returns per unit of risk. Salesforce com inc is currently generating about 0.49 of returns per unit of risk over similar time horizon. If you would invest 9,844 in Salesforce com inc on October 21, 2017 and sell it today you would earn a total of 893 from holding Salesforce com inc or generate 9.07% return on investment over 30 days.
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Very poor diversification
Overlapping area represents the 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. The correlation between historical prices or returns on Salesforce com inc and VMware is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on VMware Inc are associated (or correlated) with Salesforce. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Salesforce com inc has no effect on the direction of VMware i.e. VMware and Salesforce go up and down completely randomly.
Compared to the overall equity markets, risk-adjusted returns on investments in VMware Inc are ranked lower than 17 (%) of all global equities and portfolios over the last 30 days.
Compared to the overall equity markets, risk-adjusted returns on investments in Salesforce com inc are ranked lower than 32 (%) of all global equities and portfolios over the last 30 days.