Correlation Between Tradeweb Markets and CIGNA
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By analyzing existing cross correlation between Tradeweb Markets and CIGNA P, you can compare the effects of market volatilities on Tradeweb Markets and CIGNA 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 CIGNA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tradeweb Markets and CIGNA.
Diversification Opportunities for Tradeweb Markets and CIGNA
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Tradeweb and CIGNA is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Tradeweb Markets and CIGNA P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CIGNA P 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 CIGNA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CIGNA P has no effect on the direction of Tradeweb Markets i.e., Tradeweb Markets and CIGNA go up and down completely randomly.
Pair Corralation between Tradeweb Markets and CIGNA
Allowing for the 90-day total investment horizon Tradeweb Markets is expected to generate 2.09 times more return on investment than CIGNA. However, Tradeweb Markets is 2.09 times more volatile than CIGNA P. It trades about 0.25 of its potential returns per unit of risk. CIGNA P is currently generating about -0.15 per unit of risk. If you would invest 12,697 in Tradeweb Markets on September 4, 2024 and sell it today you would earn a total of 751.00 from holding Tradeweb Markets or generate 5.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 90.48% |
| Values | Daily Returns |
Tradeweb Markets vs. CIGNA P
Performance |
| Timeline |
| Tradeweb Markets |
| CIGNA P |
Tradeweb Markets and CIGNA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tradeweb Markets and CIGNA
The main advantage of trading using opposite Tradeweb Markets and CIGNA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tradeweb Markets position performs unexpectedly, CIGNA 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 CIGNA will offset losses from the drop in CIGNA'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 |
| CIGNA vs. Designer Brands | CIGNA vs. Lincoln Electric Holdings | CIGNA vs. Emerson Electric | CIGNA vs. Parker Hannifin |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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