Correlation Between Tradeweb Markets and SIEMENS AG
Can any of the company-specific risk be diversified away by investing in both Tradeweb Markets and SIEMENS AG 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 Tradeweb Markets and SIEMENS AG into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tradeweb Markets and SIEMENS AG SP, you can compare the effects of market volatilities on Tradeweb Markets and SIEMENS AG 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 Tradeweb Markets with a short position of SIEMENS AG. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tradeweb Markets and SIEMENS AG.
Diversification Opportunities for Tradeweb Markets and SIEMENS AG
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Tradeweb and SIEMENS is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Tradeweb Markets and SIEMENS AG SP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SIEMENS AG SP and Tradeweb Markets 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 Tradeweb Markets are associated (or correlated) with SIEMENS AG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SIEMENS AG SP has no effect on the direction of Tradeweb Markets i.e., Tradeweb Markets and SIEMENS AG go up and down completely randomly.
Pair Corralation between Tradeweb Markets and SIEMENS AG
Assuming the 90 days horizon Tradeweb Markets is expected to generate 0.75 times more return on investment than SIEMENS AG. However, Tradeweb Markets is 1.34 times less risky than SIEMENS AG. It trades about 0.1 of its potential returns per unit of risk. SIEMENS AG SP is currently generating about 0.03 per unit of risk. If you would invest 12,500 in Tradeweb Markets on October 16, 2024 and sell it today you would earn a total of 300.00 from holding Tradeweb Markets or generate 2.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tradeweb Markets vs. SIEMENS AG SP
Performance |
| Timeline |
| Tradeweb Markets |
| SIEMENS AG SP |
Tradeweb Markets and SIEMENS AG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tradeweb Markets and SIEMENS AG
The main advantage of trading using opposite Tradeweb Markets and SIEMENS AG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tradeweb Markets position performs unexpectedly, SIEMENS AG 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 SIEMENS AG will offset losses from the drop in SIEMENS AG's long position.| Tradeweb Markets vs. IMPERIAL TOBACCO | Tradeweb Markets vs. G III Apparel Group | Tradeweb Markets vs. AM EAGLE OUTFITTERS | Tradeweb Markets vs. BRIT AMER TOBACCO |
| SIEMENS AG vs. Tradeweb Markets | SIEMENS AG vs. betterU Education Corp | SIEMENS AG vs. VIVA WINE GROUP | SIEMENS AG vs. Tradegate AG Wertpapierhandelsbank |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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