Correlation Between Hut 8 and Tradeweb Markets

Can any of the company-specific risk be diversified away by investing in both Hut 8 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 Hut 8 and Tradeweb Markets into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Hut 8 Corp and Tradeweb Markets, you can compare the effects of market volatilities on Hut 8 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 Hut 8 with a short position of Tradeweb Markets. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hut 8 and Tradeweb Markets.

Diversification Opportunities for Hut 8 and Tradeweb Markets

-0.57

Correlation Coefficient

Hut 8  Tradeweb Markets

Excellent diversification

The 3 months correlation between Hut and Tradeweb is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Hut 8 Corp and Tradeweb Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tradeweb Markets and Hut 8 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 Hut 8 Corp 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 Hut 8 i.e., Hut 8 and Tradeweb Markets go up and down completely randomly.

Pair Corralation between Hut 8 and Tradeweb Markets

Considering the 90-day investment horizon Hut 8 Corp is expected to generate 2.74 times more return on investment than Tradeweb Markets. However, Hut 8 is 2.74 times more volatile than Tradeweb Markets. It trades about 0.17 of its potential returns per unit of risk. Tradeweb Markets is currently generating about -0.03 per unit of risk. If you would invest  1,276  in Hut 8 Corp on May 6, 2025 and sell it today you would earn a total of  702.00  from holding Hut 8 Corp or generate 55.02% return on investment over 90 days.

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

Hut 8 Corp  vs.  Tradeweb Markets

Hut 8 Corp

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Hut 8 Corp are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady basic indicators, Hut 8 unveiled solid returns over the last few months and may actually be approaching a breakup point.

Tradeweb Markets

Risk-Adjusted Performance

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.

Pair Trading with Hut 8 and Tradeweb Markets

The main advantage of trading using opposite Hut 8 and Tradeweb Markets positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hut 8 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 Hut 8 Corp 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.