Correlation Between Tradeweb Markets and Miniso Group

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

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

Diversification Opportunities for Tradeweb Markets and Miniso Group

-0.22

Correlation Coefficient

Tradeweb Markets  Miniso Group

Very good diversification

The 3 months correlation between Tradeweb and Miniso is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Tradeweb Markets and Miniso Group Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Miniso Group Holding 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 Miniso Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Miniso Group Holding has no effect on the direction of Tradeweb Markets i.e., Tradeweb Markets and Miniso Group go up and down completely randomly.

Pair Corralation between Tradeweb Markets and Miniso Group

Allowing for the 90-day total investment horizon Tradeweb Markets is expected to generate 0.36 times more return on investment than Miniso Group. However, Tradeweb Markets is 2.81 times less risky than Miniso Group. It trades about 0.09 of its potential returns per unit of risk. Miniso Group Holding is currently generating about -0.03 per unit of risk. If you would invest  13,261  in Tradeweb Markets on December 20, 2024 and sell it today you would earn a total of  1,039  from holding Tradeweb Markets or generate 7.84% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Tradeweb Markets  vs.  Miniso Group Holding

Tradeweb Markets

Risk-Adjusted Performance

Modest

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 fragile basic indicators, Tradeweb Markets may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Miniso Group Holding

Risk-Adjusted Performance

Very Weak

Over the last 90 days Miniso Group Holding has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest conflicting performance, the Stock's basic indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the firm investors.

Pair Trading with Tradeweb Markets and Miniso Group

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

The idea behind Tradeweb Markets and Miniso Group Holding 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.