Benchmark  United States  NYSE  10,829   46.6445  0.4326% 


Processing
Collecting data for VMW and CRM ...

Correlation analysis between VMware and Salesforce

    
  
Summary
Performance
FundamentalsTechnicalsRecomendation
   Valuation
   Backtest
   Forecast
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 1.04 times less risky than Salesforce. The stock trades about -0.22 of its potential returns per unit of risk. The Salesforce Inc is currently generating about -0.07 of returns per unit of risk over similar time horizon. If you would invest  7,184  in Salesforce Inc on June 7, 2015 and sell it today you would lose (158.00) from holding Salesforce Inc or give up 2.2% of portfolio value over 30 days.

Correlation Coefficient

0.56

Parameters

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

Diversification

Very 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

Infosys Ltd vs. VMware Inc
Autodesk Inc vs. VMware Inc
PTC Inc vs. VMware Inc
Tyler Technologies Inc vs. VMware Inc
National Instruments Corporation vs. VMware Inc
Mentor Graphics Corp vs. VMware Inc
ACI Worldwide Inc vs. VMware Inc
ScanSource Inc vs. 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

Oracle Corporation vs. Salesforce Inc
SAP AG vs. Salesforce Inc
Adobe Systems Inc vs. Salesforce Inc
Intuit Inc vs. Salesforce Inc
Red Hat Inc vs. Salesforce Inc
Mobileye NV vs. Salesforce Inc
Bank of America Corporation vs. Salesforce Inc
Splunk Inc vs. Salesforce Inc
Ansys Inc vs. Salesforce Inc