Benchmark  United States  NYSE  10,841   


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Correlation analysis between VMware and Google

    
  
Summary
Performance
FundamentalsTechnicalsRecomendation
   Valuation
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Investment horizon:  
  30 Days    Login   to change
  
This module allows you to analyze existing cross correlation between VMware Inc and Google Inc. You can compare the effects of market volatilities on VMware and Google 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 Google. Please also check ongoing floating volatility patterns of VMware and Google.
 VMware Inc.  vs   Google Inc.
Daily Returns (%)
VMW   GOOG   
Benchmark  Embed   Timeline 
Considering 30-days investment horizon, VMware is expected to generate 2.14 times less return on investment than Google. But when comparing it to its historical volatility, VMware Inc is 2.95 times less risky than Google. It trades about 0.34 of its potential returns per unit of risk. Google Inc is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest  52,286  in Google Inc on July 5, 2015 and sell it today you would earn a total of  10,835  from holding Google Inc or generate 20.72% return on investment over 30 days.

Correlation Coefficient

-0.04

Parameters

Time Period1 Month [change]
DirectionNegative VMW Moved Down vs GOOG
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Diversification

Good diversification

Overlapping area represents amount of risk that can be diversified away by holding VMware Inc. and Google 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 22 (%) of all global equities and portfolios over the last 30 days.

Pair trading matchups for VMware

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Google Inc

  

Risk-adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Google Inc are ranked lower than 16 (%) of all global equities and portfolios over the last 30 days.

Pair trading matchups for Google

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