Correlation Between Atos Origin and FiscalNote Holdings

Can any of the company-specific risk be diversified away by investing in both Atos Origin and FiscalNote Holdings 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 Atos Origin and FiscalNote Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Atos Origin SA and FiscalNote Holdings, you can compare the effects of market volatilities on Atos Origin and FiscalNote Holdings 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 Atos Origin with a short position of FiscalNote Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atos Origin and FiscalNote Holdings.

Diversification Opportunities for Atos Origin and FiscalNote Holdings

-0.48

Correlation Coefficient

Atos Origin  FiscalNote Holdings

Very good diversification

The 3 months correlation between Atos and FiscalNote is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Atos Origin SA and FiscalNote Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FiscalNote Holdings and Atos Origin 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 Atos Origin SA are associated (or correlated) with FiscalNote Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FiscalNote Holdings has no effect on the direction of Atos Origin i.e., Atos Origin and FiscalNote Holdings go up and down completely randomly.

Pair Corralation between Atos Origin and FiscalNote Holdings

Assuming the 90 days horizon Atos Origin SA is expected to under-perform the FiscalNote Holdings. In addition to that, Atos Origin is 3.18 times more volatile than FiscalNote Holdings. It trades about -0.14 of its total potential returns per unit of risk. FiscalNote Holdings is currently generating about 0.16 per unit of volatility. If you would invest  93.00  in FiscalNote Holdings on October 9, 2024 and sell it today you would earn a total of  44.00  from holding FiscalNote Holdings or generate 47.31% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Atos Origin SA  vs.  FiscalNote Holdings

Atos Origin SA

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Atos Origin SA has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

FiscalNote Holdings

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in FiscalNote Holdings are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady basic indicators, FiscalNote Holdings exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Atos Origin and FiscalNote Holdings

The main advantage of trading using opposite Atos Origin and FiscalNote Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atos Origin position performs unexpectedly, FiscalNote Holdings 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 FiscalNote Holdings will offset losses from the drop in FiscalNote Holdings' long position.

The idea behind Atos Origin SA and FiscalNote Holdings pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.