Correlation Between FiscalNote Holdings and 9F
Can any of the company-specific risk be diversified away by investing in both FiscalNote Holdings and 9F 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 9F into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FiscalNote Holdings and 9F Inc, you can compare the effects of market volatilities on FiscalNote Holdings and 9F 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 9F. Check out your portfolio center. Please also check ongoing floating volatility patterns of FiscalNote Holdings and 9F.
Diversification Opportunities for FiscalNote Holdings and 9F
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between FiscalNote and 9F is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding FiscalNote Holdings and 9F Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 9F Inc 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 9F. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 9F Inc has no effect on the direction of FiscalNote Holdings i.e., FiscalNote Holdings and 9F go up and down completely randomly.
Pair Corralation between FiscalNote Holdings and 9F
Given the investment horizon of 90 days FiscalNote Holdings is expected to under-perform the 9F. But the stock apears to be less risky and, when comparing its historical volatility, FiscalNote Holdings is 1.87 times less risky than 9F. The stock trades about -0.04 of its potential returns per unit of risk. The 9F Inc is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 309.00 in 9F Inc on August 27, 2024 and sell it today you would lose (172.00) from holding 9F Inc or give up 55.66% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
FiscalNote Holdings vs. 9F Inc
Performance |
| Timeline |
| FiscalNote Holdings |
| 9F Inc |
FiscalNote Holdings and 9F Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FiscalNote Holdings and 9F
The main advantage of trading using opposite FiscalNote Holdings and 9F positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FiscalNote Holdings position performs unexpectedly, 9F 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 9F will offset losses from the drop in 9F's long position.| 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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