Correlation Between Tradeweb Markets and TWFG,

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

By analyzing existing cross correlation between Tradeweb Markets and TWFG, Class A, you can compare the effects of market volatilities on Tradeweb Markets and TWFG, 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 TWFG,. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tradeweb Markets and TWFG,.

Diversification Opportunities for Tradeweb Markets and TWFG,

0.38

Correlation Coefficient

Tradeweb Markets  TWFG,

Weak diversification

The 3 months correlation between Tradeweb and TWFG, is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Tradeweb Markets and TWFG, Class A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TWFG, Class A 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 TWFG,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TWFG, Class A has no effect on the direction of Tradeweb Markets i.e., Tradeweb Markets and TWFG, go up and down completely randomly.

Pair Corralation between Tradeweb Markets and TWFG,

Allowing for the 90-day total investment horizon Tradeweb Markets is expected to generate 0.47 times more return on investment than TWFG,. However, Tradeweb Markets is 2.12 times less risky than TWFG,. It trades about 0.12 of its potential returns per unit of risk. TWFG, Class A is currently generating about -0.09 per unit of risk. If you would invest  12,691  in Tradeweb Markets on October 1, 2024 and sell it today you would earn a total of  802.00  from holding Tradeweb Markets or generate 6.32% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	97.62%
Values	Daily Returns

Tradeweb Markets  vs.  TWFG, Class A

Tradeweb Markets

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Tradeweb Markets are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unsteady basic indicators, Tradeweb Markets may actually be approaching a critical reversion point that can send shares even higher in January 2025.

TWFG, Class A

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in TWFG, Class A are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite nearly unfluctuating technical and fundamental indicators, TWFG, may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Tradeweb Markets and TWFG,

The main advantage of trading using opposite Tradeweb Markets and TWFG, positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tradeweb Markets position performs unexpectedly, TWFG, 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 TWFG, will offset losses from the drop in TWFG,'s long position.

The idea behind Tradeweb Markets and TWFG, Class A 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.