Correlation Between BCE and FiscalNote Holdings
Can any of the company-specific risk be diversified away by investing in both BCE and FiscalNote 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 BCE and FiscalNote Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BCE Inc and FiscalNote Holdings, you can compare the effects of market volatilities on BCE and FiscalNote 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 BCE with a short position of FiscalNote Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of BCE and FiscalNote Holdings.
Diversification Opportunities for BCE and FiscalNote Holdings
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between BCE and FiscalNote is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding BCE Inc and FiscalNote Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FiscalNote Holdings and BCE 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 BCE Inc are associated (or correlated) with FiscalNote Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FiscalNote Holdings has no effect on the direction of BCE i.e., BCE and FiscalNote Holdings go up and down completely randomly.
Pair Corralation between BCE and FiscalNote Holdings
Considering the 90-day investment horizon BCE Inc is expected to under-perform the FiscalNote Holdings. But the stock apears to be less risky and, when comparing its historical volatility, BCE Inc is 6.83 times less risky than FiscalNote Holdings. The stock trades about -0.08 of its potential returns per unit of risk. The FiscalNote Holdings is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 355.00 in FiscalNote Holdings on August 27, 2024 and sell it today you would lose (262.00) from holding FiscalNote Holdings or give up 73.8% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
BCE Inc vs. FiscalNote Holdings
Performance |
| Timeline |
| BCE Inc |
| FiscalNote Holdings |
BCE and FiscalNote Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BCE and FiscalNote Holdings
The main advantage of trading using opposite BCE and FiscalNote Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BCE position performs unexpectedly, FiscalNote 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 FiscalNote Holdings will offset losses from the drop in FiscalNote Holdings' long position.| BCE vs. Liberty Broadband Srs | BCE vs. Ribbon Communications | BCE vs. Liberty Broadband Srs | BCE vs. Shenandoah Telecommunications Co |
| FiscalNote Holdings vs. Magic Empire Global | FiscalNote Holdings vs. Zhong Yang Financial | FiscalNote Holdings vs. Netcapital | FiscalNote Holdings vs. Lazard |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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