Correlation Between Cantaloupe and FiscalNote Holdings
Can any of the company-specific risk be diversified away by investing in both Cantaloupe 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 Cantaloupe and FiscalNote Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cantaloupe and FiscalNote Holdings, you can compare the effects of market volatilities on Cantaloupe 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 Cantaloupe with a short position of FiscalNote Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cantaloupe and FiscalNote Holdings.
Diversification Opportunities for Cantaloupe and FiscalNote Holdings
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Cantaloupe and FiscalNote is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Cantaloupe and FiscalNote Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FiscalNote Holdings and Cantaloupe 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 Cantaloupe 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 Cantaloupe i.e., Cantaloupe and FiscalNote Holdings go up and down completely randomly.
Pair Corralation between Cantaloupe and FiscalNote Holdings
Given the investment horizon of 90 days Cantaloupe is expected to generate 0.43 times more return on investment than FiscalNote Holdings. However, Cantaloupe is 2.3 times less risky than FiscalNote Holdings. It trades about -0.05 of its potential returns per unit of risk. FiscalNote Holdings is currently generating about -0.23 per unit of risk. If you would invest 927.00 in Cantaloupe on August 24, 2024 and sell it today you would lose (27.00) from holding Cantaloupe or give up 2.91% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cantaloupe vs. FiscalNote Holdings
Performance |
| Timeline |
| Cantaloupe |
| FiscalNote Holdings |
Cantaloupe and FiscalNote Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cantaloupe and FiscalNote Holdings
The main advantage of trading using opposite Cantaloupe and FiscalNote Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cantaloupe 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.| Cantaloupe vs. FiscalNote Holdings | Cantaloupe vs. CLPS Inc | Cantaloupe vs. Formula Systems 1985 | Cantaloupe vs. CSP Inc |
| FiscalNote Holdings vs. Concentrix | FiscalNote Holdings vs. Accenture plc | FiscalNote Holdings vs. International Business Machines | FiscalNote Holdings vs. Cognizant Technology Solutions |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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