Correlation Between Tradeweb Markets and FIDELITY

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

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

Diversification Opportunities for Tradeweb Markets and FIDELITY

-0.01

Correlation Coefficient

Tradeweb Markets  FIDELITY

Good diversification

The 3 months correlation between Tradeweb and FIDELITY is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Tradeweb Markets and FIDELITY NATIONAL INFORMATION in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FIDELITY NATIONAL 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 FIDELITY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FIDELITY NATIONAL has no effect on the direction of Tradeweb Markets i.e., Tradeweb Markets and FIDELITY go up and down completely randomly.

Pair Corralation between Tradeweb Markets and FIDELITY

Allowing for the 90-day total investment horizon Tradeweb Markets is expected to generate 0.44 times more return on investment than FIDELITY. However, Tradeweb Markets is 2.26 times less risky than FIDELITY. It trades about 0.24 of its potential returns per unit of risk. FIDELITY NATIONAL INFORMATION is currently generating about -0.18 per unit of risk. If you would invest  12,731  in Tradeweb Markets on October 8, 2024 and sell it today you would earn a total of  712.00  from holding Tradeweb Markets or generate 5.59% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	84.21%
Values	Daily Returns

Tradeweb Markets  vs.  FIDELITY NATIONAL INFORMATION

Tradeweb Markets

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Tradeweb Markets are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. 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.

FIDELITY NATIONAL

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days FIDELITY NATIONAL INFORMATION has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Bond's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for FIDELITY NATIONAL INFORMATION investors.

Pair Trading with Tradeweb Markets and FIDELITY

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

The idea behind Tradeweb Markets and FIDELITY NATIONAL INFORMATION 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.