Correlation Between FiscalNote Holdings and GE Vernova
Can any of the company-specific risk be diversified away by investing in both FiscalNote Holdings and GE Vernova 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 GE Vernova into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FiscalNote Holdings and GE Vernova LLC, you can compare the effects of market volatilities on FiscalNote Holdings and GE Vernova 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 GE Vernova. Check out your portfolio center. Please also check ongoing floating volatility patterns of FiscalNote Holdings and GE Vernova.
Diversification Opportunities for FiscalNote Holdings and GE Vernova
-0.88 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between FiscalNote and GEV is -0.88. Overlapping area represents the amount of risk that can be diversified away by holding FiscalNote Holdings and GE Vernova LLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GE Vernova LLC 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 GE Vernova. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GE Vernova LLC has no effect on the direction of FiscalNote Holdings i.e., FiscalNote Holdings and GE Vernova go up and down completely randomly.
Pair Corralation between FiscalNote Holdings and GE Vernova
Given the investment horizon of 90 days FiscalNote Holdings is expected to under-perform the GE Vernova. In addition to that, FiscalNote Holdings is 1.61 times more volatile than GE Vernova LLC. It trades about -0.1 of its total potential returns per unit of risk. GE Vernova LLC is currently generating about 0.27 per unit of volatility. If you would invest 29,354 in GE Vernova LLC on August 26, 2024 and sell it today you would earn a total of 5,562 from holding GE Vernova LLC or generate 18.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
FiscalNote Holdings vs. GE Vernova LLC
Performance |
| Timeline |
| FiscalNote Holdings |
| GE Vernova LLC |
FiscalNote Holdings and GE Vernova Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FiscalNote Holdings and GE Vernova
The main advantage of trading using opposite FiscalNote Holdings and GE Vernova positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FiscalNote Holdings position performs unexpectedly, GE Vernova 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 GE Vernova will offset losses from the drop in GE Vernova's long position.| FiscalNote Holdings vs. Innodata | FiscalNote Holdings vs. International Business Machines | FiscalNote Holdings vs. Aurora Innovation | FiscalNote Holdings vs. BigBearai Holdings |
| GE Vernova vs. Kaltura | GE Vernova vs. Paiute Oil Mining | GE Vernova vs. FiscalNote Holdings | GE Vernova vs. Perseus Mining Limited |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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