Benchmark  United States  NYSE  11,065   132.3682  -1.1821% 


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Collecting data for VMW and ORCL ...

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. But the stock apears to be less risky and, when comparing its historical volatility, VMware Inc is 1.06 times less risky than Oracle. The stock trades about -0.12 of its potential returns per unit of risk. The Oracle Corporation is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest  4,361  in Oracle Corporation on April 27, 2015 and sell it today you would lose (28.00) from holding Oracle Corporation or give up 0.64% of portfolio value over 30 days.

Correlation Coefficient

-0.14

Parameters

Time Period1 Month [change]
DirectionNegative VMW Moved Down vs ORCL
StrengthInsignificant
Accuracy90.91%
ValuesDaily Returns

Diversification

Good 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

Autodesk Inc vs. VMware Inc
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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

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