Correlation Between FiscalNote Holdings and Hannon Armstrong
Can any of the company-specific risk be diversified away by investing in both FiscalNote Holdings and Hannon Armstrong 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 Hannon Armstrong into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FiscalNote Holdings and Hannon Armstrong Sustainable, you can compare the effects of market volatilities on FiscalNote Holdings and Hannon Armstrong 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 Hannon Armstrong. Check out your portfolio center. Please also check ongoing floating volatility patterns of FiscalNote Holdings and Hannon Armstrong.
Diversification Opportunities for FiscalNote Holdings and Hannon Armstrong
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between FiscalNote and Hannon is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding FiscalNote Holdings and Hannon Armstrong Sustainable in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hannon Armstrong Sus 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 Hannon Armstrong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hannon Armstrong Sus has no effect on the direction of FiscalNote Holdings i.e., FiscalNote Holdings and Hannon Armstrong go up and down completely randomly.
Pair Corralation between FiscalNote Holdings and Hannon Armstrong
Given the investment horizon of 90 days FiscalNote Holdings is expected to under-perform the Hannon Armstrong. In addition to that, FiscalNote Holdings is 1.71 times more volatile than Hannon Armstrong Sustainable. It trades about -0.04 of its total potential returns per unit of risk. Hannon Armstrong Sustainable is currently generating about -0.01 per unit of volatility. If you would invest 3,210 in Hannon Armstrong Sustainable on September 4, 2024 and sell it today you would lose (142.00) from holding Hannon Armstrong Sustainable or give up 4.42% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
FiscalNote Holdings vs. Hannon Armstrong Sustainable
Performance |
| Timeline |
| FiscalNote Holdings |
| Hannon Armstrong Sus |
FiscalNote Holdings and Hannon Armstrong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FiscalNote Holdings and Hannon Armstrong
The main advantage of trading using opposite FiscalNote Holdings and Hannon Armstrong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FiscalNote Holdings position performs unexpectedly, Hannon Armstrong 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 Hannon Armstrong will offset losses from the drop in Hannon Armstrong's long position.| FiscalNote Holdings vs. Innodata | FiscalNote Holdings vs. International Business Machines | FiscalNote Holdings vs. Aurora Innovation | FiscalNote Holdings vs. BigBearai Holdings |
| Hannon Armstrong vs. Equinix | Hannon Armstrong vs. Crown Castle | Hannon Armstrong vs. American Tower Corp | Hannon Armstrong vs. Iron Mountain Incorporated |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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