This module allows you to analyze existing cross correlation between Yahoo Inc and VMware Inc. You can compare the effects of market volatilities on Yahoo and VMware 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 Yahoo with a short position of VMware. See also your portfolio center
. Please also check ongoing floating volatility patterns of Yahoo
Yahoo Inc. vs VMware Inc.
Given the investment horizon of 30 days, Yahoo Inc is expected to generate 0.87 times more return on investment than VMware. However, Yahoo Inc is 1.15 times less risky than VMware. It trades about 0.21 of its potential returns per unit of risk. VMware Inc is currently generating about 0.11 per unit of risk. If you would invest 4,861 in Yahoo Inc on April 29, 2017 and sell it today you would earn a total of 206.00 from holding Yahoo Inc or generate 4.24% return on investment over 30 days.
|Time Period||1 Month [change]|
Very weak diversification
Overlapping area represents the amount of risk that can be diversified away by holding Yahoo Inc. and VMware Inc. in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on VMware Inc and Yahoo 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 Yahoo Inc are associated (or correlated) with VMware. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VMware Inc has no effect on the direction of Yahoo i.e. Yahoo and VMware go up and down completely randomly.
Compared to the overall equity markets, risk-adjusted returns on investments in Yahoo Inc are ranked lower than 14 (%) of all global equities and portfolios over the last 30 days.
Compared to the overall equity markets, risk-adjusted returns on investments in VMware Inc are ranked lower than 7 (%) of all global equities and portfolios over the last 30 days.