Correlation Between Stifel Financial and Tradeweb Markets
Can any of the company-specific risk be diversified away by investing in both Stifel Financial 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 Stifel Financial and Tradeweb Markets into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stifel Financial and Tradeweb Markets, you can compare the effects of market volatilities on Stifel Financial 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 Stifel Financial with a short position of Tradeweb Markets. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stifel Financial and Tradeweb Markets.
Diversification Opportunities for Stifel Financial and Tradeweb Markets
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Stifel and Tradeweb is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Stifel Financial and Tradeweb Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tradeweb Markets and Stifel Financial 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 Stifel Financial 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 Stifel Financial i.e., Stifel Financial and Tradeweb Markets go up and down completely randomly.
Pair Corralation between Stifel Financial and Tradeweb Markets
Allowing for the 90-day total investment horizon Stifel Financial is expected to generate 1.25 times more return on investment than Tradeweb Markets. However, Stifel Financial is 1.25 times more volatile than Tradeweb Markets. It trades about 0.22 of its potential returns per unit of risk. Tradeweb Markets is currently generating about -0.22 per unit of risk. If you would invest 10,816 in Stifel Financial on November 4, 2024 and sell it today you would earn a total of 769.00 from holding Stifel Financial or generate 7.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Stifel Financial vs. Tradeweb Markets
Performance |
| Timeline |
| Stifel Financial |
| Tradeweb Markets |
Stifel Financial and Tradeweb Markets Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stifel Financial and Tradeweb Markets
The main advantage of trading using opposite Stifel Financial and Tradeweb Markets positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stifel Financial 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.| Stifel Financial vs. Raymond James Financial | Stifel Financial vs. Evercore Partners | Stifel Financial vs. Selective Insurance Group | Stifel Financial vs. Reinsurance Group of |
| 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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