Correlation Between High Wire and FiscalNote Holdings

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

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

Diversification Opportunities for High Wire and FiscalNote Holdings

0.19

Correlation Coefficient

High Wire  FiscalNote Holdings

Average diversification

The 3 months correlation between High and FiscalNote is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding High Wire Networks and FiscalNote Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FiscalNote Holdings and High Wire 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 High Wire Networks 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 High Wire i.e., High Wire and FiscalNote Holdings go up and down completely randomly.

Pair Corralation between High Wire and FiscalNote Holdings

Given the investment horizon of 90 days High Wire Networks is expected to under-perform the FiscalNote Holdings. But the otc stock apears to be less risky and, when comparing its historical volatility, High Wire Networks is 1.2 times less risky than FiscalNote Holdings. The otc stock trades about -0.2 of its potential returns per unit of risk. The FiscalNote Holdings is currently generating about 0.33 of returns per unit of risk over similar time horizon. If you would invest  84.00  in FiscalNote Holdings on October 9, 2024 and sell it today you would earn a total of  53.00  from holding FiscalNote Holdings or generate 63.1% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

High Wire Networks  vs.  FiscalNote Holdings

High Wire Networks

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in High Wire Networks are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite fairly unsteady basic indicators, High Wire demonstrated solid returns over the last few months and may actually be approaching a breakup point.

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 High Wire and FiscalNote Holdings

The main advantage of trading using opposite High Wire and FiscalNote Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if High Wire 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 High Wire Networks 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.

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 Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.