Correlation Between FiscalNote Holdings and Aker ASA
Can any of the company-specific risk be diversified away by investing in both FiscalNote Holdings and Aker ASA 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 FiscalNote Holdings and Aker ASA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FiscalNote Holdings and Aker ASA, you can compare the effects of market volatilities on FiscalNote Holdings and Aker ASA 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 FiscalNote Holdings with a short position of Aker ASA. Check out your portfolio center. Please also check ongoing floating volatility patterns of FiscalNote Holdings and Aker ASA.
Diversification Opportunities for FiscalNote Holdings and Aker ASA
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between FiscalNote and Aker is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding FiscalNote Holdings and Aker ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aker ASA and FiscalNote Holdings 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 FiscalNote Holdings are associated (or correlated) with Aker ASA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aker ASA has no effect on the direction of FiscalNote Holdings i.e., FiscalNote Holdings and Aker ASA go up and down completely randomly.
Pair Corralation between FiscalNote Holdings and Aker ASA
If you would invest 89.00 in FiscalNote Holdings on September 2, 2024 and sell it today you would lose (2.00) from holding FiscalNote Holdings or give up 2.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
FiscalNote Holdings vs. Aker ASA
Performance |
| Timeline |
| FiscalNote Holdings |
| Aker ASA |
FiscalNote Holdings and Aker ASA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FiscalNote Holdings and Aker ASA
The main advantage of trading using opposite FiscalNote Holdings and Aker ASA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FiscalNote Holdings position performs unexpectedly, Aker ASA 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 Aker ASA will offset losses from the drop in Aker ASA's long position.| FiscalNote Holdings vs. Innodata | FiscalNote Holdings vs. International Business Machines | FiscalNote Holdings vs. Aurora Innovation | FiscalNote Holdings vs. BigBearai Holdings |
| Aker ASA vs. BCB Bancorp | Aker ASA vs. LithiumBank Resources Corp | Aker ASA vs. FiscalNote Holdings | Aker ASA vs. FactSet Research Systems |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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