Pair Correlation Between VMware Inc 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 Inc 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 Inc with a short position of Oracle. Please also check ongoing floating volatility patterns of VMware Inc 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 Inc is 1.73 times more volatile than Oracle Corporation. It trades about -0.24 of its total potential returns per unit of risk. Oracle Corporation is currently generating about 0.13 per unit of volatility. If you would invest  3,412  in Oracle Corporation on January 15, 2016 and sell it today you would earn a total of  142.00  from holding Oracle Corporation or generate 4.16% return on investment over 30 days.

Correlation Coefficient

0.37

Parameters

Time Period1 Month [change]
DirectionPositive 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns
  

Diversification

Weak 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 Inc

  

Oracle

  

Risk-adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Oracle Corporation are ranked lower than 8 (%) of all global equities and portfolios over the last 30 days.

Pair trading matchups for Oracle