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. See also your portfolio center
. Please also check ongoing floating volatility patterns of VMware
VMware Inc. vs Oracle Corp.
Considering 30-days investment horizon, VMware is expected to generate 3.45 times less return on investment than Oracle. But when comparing it to its historical volatility, VMware Inc is 1.61 times less risky than Oracle. It trades about 0.07 of its potential returns per unit of risk. Oracle Corporation is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 4,270 in Oracle Corporation on February 25, 2017 and sell it today you would earn a total of 195.00 from holding Oracle Corporation or generate 4.57% return on investment over 30 days.
|Time Period||1 Month [change]|
Very poor diversification
Overlapping area represents the amount of risk that can be diversified away by holding VMware Inc. and Oracle Corp. in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Oracle and VMware is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on VMware Inc are associated (or correlated) with Oracle. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oracle has no effect on the direction of VMware i.e. VMware and Oracle go up and down completely randomly.
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.
Compared to the overall equity markets, risk-adjusted returns on investments in Oracle Corporation are ranked lower than 10 (%) of all global equities and portfolios over the last 30 days.