Correlation Between Oppenheimer Holdings and Tradeweb Markets
Can any of the company-specific risk be diversified away by investing in both Oppenheimer Holdings and Tradeweb Markets 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 Oppenheimer Holdings and Tradeweb Markets into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oppenheimer Holdings and Tradeweb Markets, you can compare the effects of market volatilities on Oppenheimer Holdings and Tradeweb Markets 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 Oppenheimer Holdings with a short position of Tradeweb Markets. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oppenheimer Holdings and Tradeweb Markets.
Diversification Opportunities for Oppenheimer Holdings and Tradeweb Markets
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Oppenheimer and Tradeweb is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Oppenheimer Holdings and Tradeweb Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tradeweb Markets and Oppenheimer Holdings 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 Oppenheimer Holdings are associated (or correlated) with Tradeweb Markets. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tradeweb Markets has no effect on the direction of Oppenheimer Holdings i.e., Oppenheimer Holdings and Tradeweb Markets go up and down completely randomly.
Pair Corralation between Oppenheimer Holdings and Tradeweb Markets
Considering the 90-day investment horizon Oppenheimer Holdings is expected to generate 1.23 times more return on investment than Tradeweb Markets. However, Oppenheimer Holdings is 1.23 times more volatile than Tradeweb Markets. It trades about 0.1 of its potential returns per unit of risk. Tradeweb Markets is currently generating about 0.11 per unit of risk. If you would invest 3,830 in Oppenheimer Holdings on October 24, 2024 and sell it today you would earn a total of 3,248 from holding Oppenheimer Holdings or generate 84.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oppenheimer Holdings vs. Tradeweb Markets
Performance |
| Timeline |
| Oppenheimer Holdings |
| Tradeweb Markets |
Oppenheimer Holdings and Tradeweb Markets Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oppenheimer Holdings and Tradeweb Markets
The main advantage of trading using opposite Oppenheimer Holdings and Tradeweb Markets positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oppenheimer Holdings position performs unexpectedly, Tradeweb Markets 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 Tradeweb Markets will offset losses from the drop in Tradeweb Markets' long position.| Oppenheimer Holdings vs. PJT Partners | Oppenheimer Holdings vs. Houlihan Lokey | Oppenheimer Holdings vs. Stifel Financial | Oppenheimer Holdings vs. Evercore Partners |
| Tradeweb Markets vs. Raymond James Financial | Tradeweb Markets vs. PJT Partners | Tradeweb Markets vs. Moelis Co | Tradeweb Markets vs. LPL Financial Holdings |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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