Correlation Between Tradeweb Markets and Tradegate
Can any of the company-specific risk be diversified away by investing in both Tradeweb Markets and Tradegate 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 Tradegate into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tradeweb Markets and Tradegate AG Wertpapierhandelsbank, you can compare the effects of market volatilities on Tradeweb Markets and Tradegate 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 Tradegate. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tradeweb Markets and Tradegate.
Diversification Opportunities for Tradeweb Markets and Tradegate
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Tradeweb and Tradegate is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Tradeweb Markets and Tradegate AG Wertpapierhandels in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tradegate AG Wertpap 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 Tradegate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tradegate AG Wertpap has no effect on the direction of Tradeweb Markets i.e., Tradeweb Markets and Tradegate go up and down completely randomly.
Pair Corralation between Tradeweb Markets and Tradegate
Assuming the 90 days horizon Tradeweb Markets is expected to generate 1.7 times more return on investment than Tradegate. However, Tradeweb Markets is 1.7 times more volatile than Tradegate AG Wertpapierhandelsbank. It trades about 0.06 of its potential returns per unit of risk. Tradegate AG Wertpapierhandelsbank is currently generating about 0.0 per unit of risk. If you would invest 12,191 in Tradeweb Markets on October 12, 2024 and sell it today you would earn a total of 609.00 from holding Tradeweb Markets or generate 5.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tradeweb Markets vs. Tradegate AG Wertpapierhandels
Performance |
| Timeline |
| Tradeweb Markets |
| Tradegate AG Wertpap |
Tradeweb Markets and Tradegate Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tradeweb Markets and Tradegate
The main advantage of trading using opposite Tradeweb Markets and Tradegate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tradeweb Markets position performs unexpectedly, Tradegate 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 Tradegate will offset losses from the drop in Tradegate's long position.| Tradeweb Markets vs. TITAN MACHINERY | Tradeweb Markets vs. GigaMedia | Tradeweb Markets vs. Hitachi Construction Machinery | Tradeweb Markets vs. Sterling Construction |
| Tradegate vs. SOFI TECHNOLOGIES | Tradegate vs. BioNTech SE | Tradegate vs. Eurasia Mining Plc | Tradegate vs. Agilent Technologies |
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 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.
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