Benchmark  United States  NYSE  10,884   93.7363  0.8687% 


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Correlation analysis between VMware and Microsoft

    
  
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 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 is expected to generate 2.56 times less return on investment than Microsoft. In addition to that, VMware is 1.11 times more volatile than Microsoft Corporation. It trades about 0.06 of its total potential returns per unit of risk. Microsoft Corporation is currently generating about 0.18 per unit of volatility. If you would invest  4,415  in Microsoft Corporation on June 30, 2015 and sell it today you would earn a total of  214.00  from holding Microsoft Corporation or generate 4.85% return on investment over 30 days.

Correlation Coefficient

-0.07

Parameters

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

Diversification

Good 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

  

Risk-adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in VMware Inc are ranked lower than 4 (%) of all global equities and portfolios over the last 30 days.

Pair trading matchups for VMware

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Microsoft

  

Risk-adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Microsoft Corporation are ranked lower than 12 (%) of all global equities and portfolios over the last 30 days.

Pair trading matchups for Microsoft

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