Correlation Between Gartner and MarketAxess Holdings

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

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

Diversification Opportunities for Gartner and MarketAxess Holdings

0.55

Correlation Coefficient

Gartner  MarketAxess Holdings

Very weak diversification

The 3 months correlation between Gartner and MarketAxess is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Gartner and MarketAxess Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MarketAxess Holdings and Gartner 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 Gartner are associated (or correlated) with MarketAxess Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MarketAxess Holdings has no effect on the direction of Gartner i.e., Gartner and MarketAxess Holdings go up and down completely randomly.

Pair Corralation between Gartner and MarketAxess Holdings

Allowing for the 90-day total investment horizon Gartner is expected to under-perform the MarketAxess Holdings. But the stock apears to be less risky and, when comparing its historical volatility, Gartner is 1.12 times less risky than MarketAxess Holdings. The stock trades about -0.3 of its potential returns per unit of risk. The MarketAxess Holdings is currently generating about -0.09 of returns per unit of risk over similar time horizon. If you would invest  22,810  in MarketAxess Holdings on May 6, 2025 and sell it today you would lose (1,867) from holding MarketAxess Holdings or give up 8.19% of portfolio value over 90 days.

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

Gartner  vs.  MarketAxess Holdings

Gartner

Risk-Adjusted Performance

Very Weak

Over the last 90 days Gartner has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of inconsistent performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in September 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

MarketAxess Holdings

Risk-Adjusted Performance

Very Weak

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

Pair Trading with Gartner and MarketAxess Holdings

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

The idea behind Gartner and MarketAxess Holdings 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.