Benchmark  United States  NYSE  11,065   132.3682  -1.1821% 


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Collecting data for YHOO and VMW ...

Correlation analysis between Yahoo and VMware  

    
Investment horizon:  
  30 Days    Login   to change
  
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. Please also check ongoing floating volatility patterns of Yahoo and VMware.
 Yahoo! Inc.  vs   VMware Inc.
Daily Returns (%)
YHOO   VMW   
Benchmark  Embed   Timeline 
Given the investment horizon of 30 days, Yahoo Inc is expected to under-perform the VMware. In addition to that, Yahoo is 2.94 times more volatile than VMware Inc. It trades about -0.05 of its total potential returns per unit of risk. VMware Inc is currently generating about -0.12 per unit of volatility. If you would invest  8,899  in VMware Inc on April 27, 2015 and sell it today you would lose (215.00) from holding VMware Inc or give up 2.42% of portfolio value over 30 days.

Correlation Coefficient

-0.19

Parameters

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

Diversification

Good diversification

Overlapping area represents amount of risk that can be diversified away by holding Yahoo! Inc. and VMware Inc. in the same portfolio assuming nothing else is changed

Historical Performance Chart

Comparative Volatility

Predicted Return Density  
Benchmark  Embed   Returns 

Yahoo Inc

  

Risk-adjusted Performance

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

Pair trading matchups for Yahoo

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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

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