Pair Correlation Between VMware and Oracle

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 and Oracle.
Investment Horizon     30 Days    Login   to change
Symbolsvs
 VMware Inc.  vs   Oracle Corp.
 Performance (%) 
      Timeline 

Pair Volatility

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 1.32 times less risky than Oracle. The stock trades about -0.2 of its potential returns per unit of risk. The Oracle Corporation is currently generating about 0.3 of returns per unit of risk over similar time horizon. If you would invest  4,526  in Oracle Corporation on May 26, 2017 and sell it today you would earn a total of  569.00  from holding Oracle Corporation or generate 12.57% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between VMware and Oracle
-0.04

Parameters

Time Period1 Month [change]
DirectionNegative 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Diversification

Good 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.

Comparative Volatility

 Predicted Return Density 
      Returns 

VMware Inc

  
0 

Risk-Adjusted Performance

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

Oracle

  
20 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Oracle Corporation are ranked lower than 20 (%) of all global equities and portfolios over the last 30 days.