Correlation Between FiscalNote Holdings and Cantaloupe
Can any of the company-specific risk be diversified away by investing in both FiscalNote Holdings and Cantaloupe 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 Cantaloupe into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FiscalNote Holdings and Cantaloupe, you can compare the effects of market volatilities on FiscalNote Holdings and Cantaloupe 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 Cantaloupe. Check out your portfolio center. Please also check ongoing floating volatility patterns of FiscalNote Holdings and Cantaloupe.
Diversification Opportunities for FiscalNote Holdings and Cantaloupe
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between FiscalNote and Cantaloupe is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding FiscalNote Holdings and Cantaloupe in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cantaloupe 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 Cantaloupe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cantaloupe has no effect on the direction of FiscalNote Holdings i.e., FiscalNote Holdings and Cantaloupe go up and down completely randomly.
Pair Corralation between FiscalNote Holdings and Cantaloupe
Given the investment horizon of 90 days FiscalNote Holdings is expected to generate 4.31 times more return on investment than Cantaloupe. However, FiscalNote Holdings is 4.31 times more volatile than Cantaloupe. It trades about -0.03 of its potential returns per unit of risk. Cantaloupe is currently generating about -0.31 per unit of risk. If you would invest 137.00 in FiscalNote Holdings on November 5, 2024 and sell it today you would lose (12.00) from holding FiscalNote Holdings or give up 8.76% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
FiscalNote Holdings vs. Cantaloupe
Performance |
| Timeline |
| FiscalNote Holdings |
| Cantaloupe |
FiscalNote Holdings and Cantaloupe Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FiscalNote Holdings and Cantaloupe
The main advantage of trading using opposite FiscalNote Holdings and Cantaloupe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FiscalNote Holdings position performs unexpectedly, Cantaloupe 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 Cantaloupe will offset losses from the drop in Cantaloupe's long position.| FiscalNote Holdings vs. Innodata | FiscalNote Holdings vs. International Business Machines | FiscalNote Holdings vs. Aurora Innovation | FiscalNote Holdings vs. BigBearai Holdings |
| Cantaloupe vs. FiscalNote Holdings | Cantaloupe vs. CLPS Inc | Cantaloupe vs. Formula Systems 1985 | Cantaloupe vs. CSP Inc |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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