Correlation Between TeamViewer and Workiva

Can any of the company-specific risk be diversified away by investing in both TeamViewer and Workiva 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 TeamViewer and Workiva into the same portfolio, which is an essential part of the fundamental portfolio management process.

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

Diversification Opportunities for TeamViewer and Workiva

-0.55

Correlation Coefficient

TeamViewer  Workiva

Excellent diversification

The 3 months correlation between TeamViewer and Workiva is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding TeamViewer AG and Workiva in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Workiva and TeamViewer 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 TeamViewer AG are associated (or correlated) with Workiva. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Workiva has no effect on the direction of TeamViewer i.e., TeamViewer and Workiva go up and down completely randomly.

Pair Corralation between TeamViewer and Workiva

Assuming the 90 days trading horizon TeamViewer AG is expected to under-perform the Workiva. In addition to that, TeamViewer is 1.74 times more volatile than Workiva. It trades about -0.27 of its total potential returns per unit of risk. Workiva is currently generating about 0.35 per unit of volatility. If you would invest  9,000  in Workiva on September 23, 2024 and sell it today you would earn a total of  1,500  from holding Workiva or generate 16.67% return on investment over 90 days.

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

TeamViewer AG  vs.  Workiva

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.

Workiva

Risk-Adjusted Performance

23 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Workiva are ranked lower than 23 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain forward-looking signals, Workiva reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with TeamViewer and Workiva

The main advantage of trading using opposite TeamViewer and Workiva positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TeamViewer position performs unexpectedly, Workiva 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 Workiva will offset losses from the drop in Workiva's long position.

The idea behind TeamViewer AG and Workiva 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.