Correlation Between Tradeweb Markets and Accelerate Acquisition

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

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

Diversification Opportunities for Tradeweb Markets and Accelerate Acquisition

0.0

Correlation Coefficient

Tradeweb Markets  Accelerate Acquisition

Pay attention - limited upside

The 3 months correlation between Tradeweb and Accelerate is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Tradeweb Markets and Accelerate Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Accelerate Acquisition 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 Accelerate Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Accelerate Acquisition has no effect on the direction of Tradeweb Markets i.e., Tradeweb Markets and Accelerate Acquisition go up and down completely randomly.

Pair Corralation between Tradeweb Markets and Accelerate Acquisition

If you would invest (100.00) in Accelerate Acquisition Corp on October 24, 2024 and sell it today you would earn a total of  100.00  from holding Accelerate Acquisition Corp or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Tradeweb Markets  vs.  Accelerate Acquisition Corp

Tradeweb Markets

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Tradeweb Markets has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, Tradeweb Markets is not utilizing all of its potentials. The current stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Accelerate Acquisition

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Accelerate Acquisition Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, Accelerate Acquisition is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Tradeweb Markets and Accelerate Acquisition

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

The idea behind Tradeweb Markets and Accelerate Acquisition Corp 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.

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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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.