Correlation Between Fastly and TeamViewer

Can any of the company-specific risk be diversified away by investing in both Fastly and TeamViewer at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Fastly and TeamViewer into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Fastly Inc and TeamViewer AG, you can compare the effects of market volatilities on Fastly and TeamViewer 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 Fastly with a short position of TeamViewer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fastly and TeamViewer.

Diversification Opportunities for Fastly and TeamViewer

-0.5

Correlation Coefficient

Fastly  TeamViewer

Very good diversification

The 3 months correlation between Fastly and TeamViewer is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Fastly Inc and TeamViewer AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TeamViewer AG and Fastly 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 Fastly Inc are associated (or correlated) with TeamViewer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TeamViewer AG has no effect on the direction of Fastly i.e., Fastly and TeamViewer go up and down completely randomly.

Pair Corralation between Fastly and TeamViewer

Assuming the 90 days trading horizon Fastly Inc is expected to generate 1.32 times more return on investment than TeamViewer. However, Fastly is 1.32 times more volatile than TeamViewer AG. It trades about 0.22 of its potential returns per unit of risk. TeamViewer AG is currently generating about -0.27 per unit of risk. If you would invest  755.00  in Fastly Inc on September 23, 2024 and sell it today you would earn a total of  172.00  from holding Fastly Inc or generate 22.78% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Fastly Inc  vs.  TeamViewer AG

Fastly Inc

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Fastly Inc are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Fastly unveiled solid returns over the last few months and may actually be approaching a breakup point.

TeamViewer AG

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days TeamViewer AG has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in January 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Fastly and TeamViewer

The main advantage of trading using opposite Fastly and TeamViewer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fastly position performs unexpectedly, TeamViewer can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in TeamViewer will offset losses from the drop in TeamViewer's long position.

The idea behind Fastly Inc and TeamViewer AG pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.