Correlation Analysis Between VMware and SPTSX Comp

This module allows you to analyze existing cross correlation between VMware and SPTSX Comp. You can compare the effects of market volatilities on VMware and SPTSX Comp 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 SPTSX Comp. See also your portfolio center. Please also check ongoing floating volatility patterns of VMware and SPTSX Comp.
Horizon     30 Days    Login   to change
Compare Efficiency

Comparative Performance

 Predicted Return Density 

VMware Inc  vs.  SPTSX Comp

 Performance (%) 

Pair Volatility

Considering 30-days investment horizon, VMware is expected to generate 4.16 times more return on investment than SPTSX Comp. However, VMware is 4.16 times more volatile than SPTSX Comp. It trades about 0.19 of its potential returns per unit of risk. SPTSX Comp is currently generating about 0.25 per unit of risk. If you would invest  17,338  in VMware on March 25, 2019 and sell it today you would earn a total of  2,060  from holding VMware or generate 11.88% return on investment over 30 days.

Pair Corralation between VMware and SPTSX Comp

Time Period2 Months [change]
ValuesDaily Returns

Diversification Opportunities for VMware and SPTSX Comp

VMware Inc diversification synergy

Very poor diversification

Overlapping area represents the amount of risk that can be diversified away by holding VMware Inc and SPTSX Comp in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on SPTSX Comp 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 are associated (or correlated) with SPTSX Comp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPTSX Comp has no effect on the direction of VMware i.e. VMware and SPTSX Comp go up and down completely randomly.
See also your portfolio center. Please also try Equity Valuation module to check real value of public entities based on technical and fundamental data.