Correlation Between Hannon Armstrong and FiscalNote Holdings
Can any of the company-specific risk be diversified away by investing in both Hannon Armstrong 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 Hannon Armstrong and FiscalNote Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hannon Armstrong Sustainable and FiscalNote Holdings, you can compare the effects of market volatilities on Hannon Armstrong 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 Hannon Armstrong with a short position of FiscalNote Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hannon Armstrong and FiscalNote Holdings.
Diversification Opportunities for Hannon Armstrong and FiscalNote Holdings
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hannon and FiscalNote is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Hannon Armstrong Sustainable and FiscalNote Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FiscalNote Holdings and Hannon Armstrong 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 Hannon Armstrong Sustainable 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 Hannon Armstrong i.e., Hannon Armstrong and FiscalNote Holdings go up and down completely randomly.
Pair Corralation between Hannon Armstrong and FiscalNote Holdings
Given the investment horizon of 90 days Hannon Armstrong Sustainable is expected to generate 0.33 times more return on investment than FiscalNote Holdings. However, Hannon Armstrong Sustainable is 3.05 times less risky than FiscalNote Holdings. It trades about 0.1 of its potential returns per unit of risk. FiscalNote Holdings is currently generating about -0.04 per unit of risk. If you would invest 2,918 in Hannon Armstrong Sustainable on September 12, 2024 and sell it today you would earn a total of 141.00 from holding Hannon Armstrong Sustainable or generate 4.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hannon Armstrong Sustainable vs. FiscalNote Holdings
Performance |
| Timeline |
| Hannon Armstrong Sus |
| FiscalNote Holdings |
Hannon Armstrong and FiscalNote Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hannon Armstrong and FiscalNote Holdings
The main advantage of trading using opposite Hannon Armstrong and FiscalNote Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hannon Armstrong 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.| Hannon Armstrong vs. Crown Castle | Hannon Armstrong vs. Iron Mountain Incorporated | Hannon Armstrong vs. Digital Realty Trust | Hannon Armstrong vs. SBA Communications Corp |
| FiscalNote Holdings vs. Innodata | FiscalNote Holdings vs. International Business Machines | FiscalNote Holdings vs. Aurora Innovation | FiscalNote Holdings vs. BigBearai Holdings |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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