Correlation Between TeamViewer and Rocket Internet
Can any of the company-specific risk be diversified away by investing in both TeamViewer and Rocket Internet 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 Rocket Internet into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TeamViewer AG and Rocket Internet SE, you can compare the effects of market volatilities on TeamViewer and Rocket Internet 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 Rocket Internet. Check out your portfolio center. Please also check ongoing floating volatility patterns of TeamViewer and Rocket Internet.
Diversification Opportunities for TeamViewer and Rocket Internet
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between TeamViewer and Rocket is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding TeamViewer AG and Rocket Internet SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rocket Internet SE 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 Rocket Internet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rocket Internet SE has no effect on the direction of TeamViewer i.e., TeamViewer and Rocket Internet go up and down completely randomly.
Pair Corralation between TeamViewer and Rocket Internet
Assuming the 90 days trading horizon TeamViewer AG is expected to under-perform the Rocket Internet. In addition to that, TeamViewer is 2.51 times more volatile than Rocket Internet SE. It trades about -0.1 of its total potential returns per unit of risk. Rocket Internet SE is currently generating about 0.05 per unit of volatility. If you would invest 1,450 in Rocket Internet SE on September 23, 2024 and sell it today you would earn a total of 50.00 from holding Rocket Internet SE or generate 3.45% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
TeamViewer AG vs. Rocket Internet SE
Performance |
Timeline |
TeamViewer AG |
Rocket Internet SE |
TeamViewer and Rocket Internet Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with TeamViewer and Rocket Internet
The main advantage of trading using opposite TeamViewer and Rocket Internet positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TeamViewer position performs unexpectedly, Rocket Internet 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 Rocket Internet will offset losses from the drop in Rocket Internet's long position.TeamViewer vs. Salesforce | TeamViewer vs. SAP SE | TeamViewer vs. Uber Technologies | TeamViewer vs. Nemetschek AG ON |
Rocket Internet vs. Salesforce | Rocket Internet vs. SAP SE | Rocket Internet vs. Uber Technologies | Rocket Internet vs. Nemetschek AG ON |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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