Macroaxis: Personalized Investing

Personalized Investing and

Digital Wealth Optimization

Benchmark  United States  NYSE  11,058   111.2969  -0.9964% 


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Collecting data for VMW and MSFT ...

Correlation analysis between VMware and Microsoft  

    
Investment horizon:  
  30 Days    Login   to change
  
This module allows you to analyze existing cross correlation between VMware Inc and Microsoft Corporation. You can compare the effects of market volatilities on VMware and Microsoft 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 Microsoft. Please also check ongoing floating volatility patterns of VMware and Microsoft.
 VMware Inc.  vs   Microsoft Corp.
Daily Returns (%)
VMW   MSFT   
Benchmark  Embed   Timeline 
Considering 30-days investment horizon, VMware Inc is expected to generate 1.12 times more return on investment than Microsoft. However, VMware is 1.12 times more volatile than Microsoft Corporation. It trades about 0.14 of its potential returns per unit of risk. Microsoft Corporation is currently generating about -0.06 per unit of risk. If you would invest  8,177  in VMware Inc on March 19, 2015 and sell it today you would earn a total of  330.00  from holding VMware Inc or generate 4.04% return on investment over 30 days.

Correlation Coefficient

0.81

Parameters

Time Period1 Month [change]
DirectionPositive MSFT Moved Up vs VMW
StrengthStrong
Accuracy95.45%
ValuesDaily Returns

Diversification

Very poor diversification

Overlapping area represents amount of risk that can be diversified away by holding VMware Inc. and Microsoft Corp. in the same portfolio assuming nothing else is changed

Historical Performance Chart

Comparative Volatility

Predicted Return Density  
Benchmark  Embed   Returns 

VMware Inc

  
Compared with the overall equity markets, risk-adjusted returns on investments in VMware Inc are ranked lower than 9 (%) of all global equities and portfolios over the last 30 days.

Pair trading matchups for VMware

Infosys Ltd vs. VMware Inc
Autodesk Inc vs. VMware Inc
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Tyler Technologies Inc vs. VMware Inc
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ACI Worldwide Inc vs. VMware Inc
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Varonis Systems Inc vs. VMware Inc
  

Microsoft

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

Pair trading matchups for Microsoft

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