Correlation Between Salesforce and TeamViewer

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

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

Diversification Opportunities for Salesforce and TeamViewer

0.13

Correlation Coefficient

Salesforce  TeamViewer

Average diversification

The 3 months correlation between Salesforce and TeamViewer is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Salesforce and TeamViewer AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TeamViewer AG and Salesforce 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 Salesforce 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 Salesforce i.e., Salesforce and TeamViewer go up and down completely randomly.

Pair Corralation between Salesforce and TeamViewer

Assuming the 90 days trading horizon Salesforce is expected to generate 0.75 times more return on investment than TeamViewer. However, Salesforce is 1.34 times less risky than TeamViewer. It trades about 0.06 of its potential returns per unit of risk. TeamViewer AG is currently generating about -0.14 per unit of risk. If you would invest  20,918  in Salesforce on April 20, 2025 and sell it today you would earn a total of  1,367  from holding Salesforce or generate 6.54% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Salesforce  vs.  TeamViewer AG

Salesforce

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Salesforce are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Salesforce may actually be approaching a critical reversion point that can send shares even higher in August 2025.

TeamViewer AG

Risk-Adjusted Performance

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 fragile performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in August 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Salesforce and TeamViewer

The main advantage of trading using opposite Salesforce and TeamViewer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Salesforce 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 Salesforce 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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.