This module allows you to analyze existing cross correlation between Workday and Alphabet. You can compare the effects of market volatilities on Workday and Alphabet 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 Workday with a short position of Alphabet. See also your portfolio center. Please also check ongoing floating volatility patterns of Workday and Alphabet.
Given the investment horizon of 30 days, Workday is expected to generate 1.45 times more return on investment than Alphabet. However, Workday is 1.45 times more volatile than Alphabet. It trades about 0.12 of its potential returns per unit of risk. Alphabet is currently generating about 0.06 per unit of risk. If you would invest 13,319 in Workday on July 18, 2018 and sell it today you would earn a total of 601.00 from holding Workday or generate 4.51% return on investment over 30 days.
Overlapping area represents the amount of risk that can be diversified away by holding Workday Inc and Alphabet Inc in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Alphabet and Workday 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 Workday are associated (or correlated) with Alphabet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alphabet has no effect on the direction of Workday i.e. Workday and Alphabet go up and down completely randomly.
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