Correlation Between Tradeweb Markets and Stifel Financial
Can any of the company-specific risk be diversified away by investing in both Tradeweb Markets and Stifel Financial 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 Stifel Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tradeweb Markets and Stifel Financial Corp, you can compare the effects of market volatilities on Tradeweb Markets and Stifel Financial 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 Stifel Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tradeweb Markets and Stifel Financial.
Diversification Opportunities for Tradeweb Markets and Stifel Financial
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Tradeweb and Stifel is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Tradeweb Markets and Stifel Financial Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stifel Financial Corp 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 Stifel Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stifel Financial Corp has no effect on the direction of Tradeweb Markets i.e., Tradeweb Markets and Stifel Financial go up and down completely randomly.
Pair Corralation between Tradeweb Markets and Stifel Financial
Allowing for the 90-day total investment horizon Tradeweb Markets is expected to generate 1.68 times more return on investment than Stifel Financial. However, Tradeweb Markets is 1.68 times more volatile than Stifel Financial Corp. It trades about 0.18 of its potential returns per unit of risk. Stifel Financial Corp is currently generating about 0.01 per unit of risk. If you would invest 11,814 in Tradeweb Markets on August 30, 2024 and sell it today you would earn a total of 1,790 from holding Tradeweb Markets or generate 15.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tradeweb Markets vs. Stifel Financial Corp
Performance |
| Timeline |
| Tradeweb Markets |
| Stifel Financial Corp |
Tradeweb Markets and Stifel Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tradeweb Markets and Stifel Financial
The main advantage of trading using opposite Tradeweb Markets and Stifel Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tradeweb Markets position performs unexpectedly, Stifel Financial 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 Stifel Financial will offset losses from the drop in Stifel Financial's long position.| Tradeweb Markets vs. Raymond James Financial | Tradeweb Markets vs. PJT Partners | Tradeweb Markets vs. Moelis Co | Tradeweb Markets vs. LPL Financial Holdings |
| Stifel Financial vs. Q2 Holdings | Stifel Financial vs. United Airlines Holdings | Stifel Financial vs. Verra Mobility Corp | Stifel Financial vs. Proficient Auto Logistics, |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |