Correlation Between Khiron Life and Tradeweb Markets

Can any of the company-specific risk be diversified away by investing in both Khiron Life 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 Khiron Life and Tradeweb Markets into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Khiron Life Sciences and Tradeweb Markets, you can compare the effects of market volatilities on Khiron Life 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 Khiron Life with a short position of Tradeweb Markets. Check out your portfolio center. Please also check ongoing floating volatility patterns of Khiron Life and Tradeweb Markets.

Diversification Opportunities for Khiron Life and Tradeweb Markets

0.0

Correlation Coefficient

Khiron Life  Tradeweb Markets

Pay attention - limited upside

The 3 months correlation between Khiron and Tradeweb is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Khiron Life Sciences and Tradeweb Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tradeweb Markets and Khiron Life 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 Khiron Life Sciences 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 Khiron Life i.e., Khiron Life and Tradeweb Markets go up and down completely randomly.

Pair Corralation between Khiron Life and Tradeweb Markets

If you would invest  10,692  in Tradeweb Markets on September 23, 2024 and sell it today you would earn a total of  1,808  from holding Tradeweb Markets or generate 16.91% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.48%
Values	Daily Returns

Khiron Life Sciences  vs.  Tradeweb Markets

Khiron Life Sciences

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Khiron Life Sciences has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Khiron Life is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Tradeweb Markets

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Tradeweb Markets are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, Tradeweb Markets reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Khiron Life and Tradeweb Markets

The main advantage of trading using opposite Khiron Life and Tradeweb Markets positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Khiron Life 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.

The idea behind Khiron Life Sciences and Tradeweb Markets pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.