Correlation Analysis Between VMware and Oracle

       
Investment Horizon     30 Days    Login   to change
This module allows you to analyze existing cross correlation between VMware Inc and Oracle Corporation. You can compare the effects of market volatilities on VMware and Oracle 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 Oracle. Please also check ongoing floating volatility patterns of VMware and Oracle.
 VMware Inc.  vs   Oracle Corp.
Daily Returns (%)
VMW   ORCL   
Benchmark  Embed   Timeline 
Considering 30-days investment horizon, VMware Inc is expected to under-perform the Oracle. In addition to that, VMware is 1.32 times more volatile than Oracle Corporation. It trades about -0.28 of its total potential returns per unit of risk. Oracle Corporation is currently generating about -0.17 per unit of volatility. If you would invest  3,994  in Oracle Corporation on July 31, 2015 and sell it today you would lose (248.00) from holding Oracle Corporation or give up 6.21% of portfolio value over 30 days.

Correlation Coefficient

0.13

Parameters

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

Diversification

Average diversification

Overlapping area represents amount of risk that can be diversified away by holding VMware Inc. and Oracle 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

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

  

Oracle

  

Risk-adjusted Performance

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

Pair trading matchups for Oracle