Benchmark  United States  NYSE  11,123   57.3848  0.5186% 


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Correlation analysis between VMware 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 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 under-perform the Salesforce. But the stock apears to be less risky and, when comparing its historical volatility, VMware Inc is 3.54 times less risky than Salesforce. The stock trades about -0.16 of its potential returns per unit of risk. The Salesforce Inc is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest  6,784  in Salesforce Inc on April 27, 2015 and sell it today you would earn a total of  577  from holding Salesforce Inc or generate 8.51% return on investment over 30 days.

Correlation Coefficient

-0.1

Parameters

Time Period1 Month [change]
DirectionNegative VMW Moved Down vs CRM
StrengthInsignificant
Accuracy90.91%
ValuesDaily Returns

Diversification

Good 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

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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.

Pair trading matchups for Salesforce

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