Correlation Between Workiva and TeamViewer

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

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

Diversification Opportunities for Workiva and TeamViewer

-0.57

Correlation Coefficient

Workiva  TeamViewer

Excellent diversification

The 3 months correlation between Workiva and TeamViewer is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Workiva and TeamViewer AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TeamViewer AG and Workiva 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 Workiva 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 Workiva i.e., Workiva and TeamViewer go up and down completely randomly.

Pair Corralation between Workiva and TeamViewer

Assuming the 90 days trading horizon Workiva is expected to generate 0.68 times more return on investment than TeamViewer. However, Workiva is 1.46 times less risky than TeamViewer. It trades about 0.3 of its potential returns per unit of risk. TeamViewer AG is currently generating about -0.1 per unit of risk. If you would invest  7,050  in Workiva on September 23, 2024 and sell it today you would earn a total of  3,550  from holding Workiva or generate 50.35% return on investment over 90 days.

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

Workiva  vs.  TeamViewer AG

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 fragile forward-looking signals, Workiva reported 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 Workiva and TeamViewer

The main advantage of trading using opposite Workiva and TeamViewer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Workiva 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 Workiva 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.

Check out your portfolio center.

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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.