Correlation Between Tradegate and Tradeweb Markets
Can any of the company-specific risk be diversified away by investing in both Tradegate 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 Tradegate and Tradeweb Markets into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tradegate AG Wertpapierhandelsbank and Tradeweb Markets, you can compare the effects of market volatilities on Tradegate 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 Tradegate with a short position of Tradeweb Markets. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tradegate and Tradeweb Markets.
Diversification Opportunities for Tradegate and Tradeweb Markets
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Tradegate and Tradeweb is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Tradegate AG Wertpapierhandels and Tradeweb Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tradeweb Markets and Tradegate 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 Tradegate AG Wertpapierhandelsbank 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 Tradegate i.e., Tradegate and Tradeweb Markets go up and down completely randomly.
Pair Corralation between Tradegate and Tradeweb Markets
Assuming the 90 days horizon Tradegate AG Wertpapierhandelsbank is expected to generate 0.31 times more return on investment than Tradeweb Markets. However, Tradegate AG Wertpapierhandelsbank is 3.22 times less risky than Tradeweb Markets. It trades about 0.0 of its potential returns per unit of risk. Tradeweb Markets is currently generating about -0.14 per unit of risk. If you would invest 8,850 in Tradegate AG Wertpapierhandelsbank on September 24, 2024 and sell it today you would earn a total of 0.00 from holding Tradegate AG Wertpapierhandelsbank or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tradegate AG Wertpapierhandels vs. Tradeweb Markets
Performance |
| Timeline |
| Tradegate AG Wertpap |
| Tradeweb Markets |
Tradegate and Tradeweb Markets Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tradegate and Tradeweb Markets
The main advantage of trading using opposite Tradegate and Tradeweb Markets positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tradegate 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.| Tradegate vs. Morgan Stanley | Tradegate vs. Morgan Stanley | Tradegate vs. The Charles Schwab | Tradegate vs. The Goldman Sachs |
| Tradeweb Markets vs. Apple Inc | Tradeweb Markets vs. Apple Inc | Tradeweb Markets vs. Apple Inc | Tradeweb Markets vs. Apple Inc |
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 Valuation module to check real value of public entities based on technical and fundamental data.
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