Correlation Between FiscalNote Holdings and BBB Foods
Can any of the company-specific risk be diversified away by investing in both FiscalNote Holdings and BBB Foods 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 BBB Foods into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FiscalNote Holdings and BBB Foods, you can compare the effects of market volatilities on FiscalNote Holdings and BBB Foods 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 BBB Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of FiscalNote Holdings and BBB Foods.
Diversification Opportunities for FiscalNote Holdings and BBB Foods
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between FiscalNote and BBB is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding FiscalNote Holdings and BBB Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BBB Foods 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 BBB Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BBB Foods has no effect on the direction of FiscalNote Holdings i.e., FiscalNote Holdings and BBB Foods go up and down completely randomly.
Pair Corralation between FiscalNote Holdings and BBB Foods
Given the investment horizon of 90 days FiscalNote Holdings is expected to generate 1.58 times more return on investment than BBB Foods. However, FiscalNote Holdings is 1.58 times more volatile than BBB Foods. It trades about -0.02 of its potential returns per unit of risk. BBB Foods is currently generating about -0.16 per unit of risk. If you would invest 91.00 in FiscalNote Holdings on September 1, 2024 and sell it today you would lose (4.00) from holding FiscalNote Holdings or give up 4.4% 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. BBB Foods
Performance |
| Timeline |
| FiscalNote Holdings |
| BBB Foods |
FiscalNote Holdings and BBB Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FiscalNote Holdings and BBB Foods
The main advantage of trading using opposite FiscalNote Holdings and BBB Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FiscalNote Holdings position performs unexpectedly, BBB Foods 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 BBB Foods will offset losses from the drop in BBB Foods' long position.| FiscalNote Holdings vs. Innodata | FiscalNote Holdings vs. International Business Machines | FiscalNote Holdings vs. BigBearai Holdings | FiscalNote Holdings vs. CLPS Inc |
| BBB Foods vs. Ingles Markets Incorporated | BBB Foods vs. Grocery Outlet Holding | BBB Foods vs. Ocado Group plc | BBB Foods vs. Sprouts Farmers Market |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. |