Correlation Between Gartner and FiscalNote Holdings

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

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

Diversification Opportunities for Gartner and FiscalNote Holdings

-0.53

Correlation Coefficient

Gartner  FiscalNote Holdings

Excellent diversification

The 3 months correlation between Gartner and FiscalNote is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Gartner and FiscalNote Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FiscalNote Holdings and Gartner 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 Gartner 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 Gartner i.e., Gartner and FiscalNote Holdings go up and down completely randomly.

Pair Corralation between Gartner and FiscalNote Holdings

Allowing for the 90-day total investment horizon Gartner is expected to generate 0.3 times more return on investment than FiscalNote Holdings. However, Gartner is 3.3 times less risky than FiscalNote Holdings. It trades about 0.11 of its potential returns per unit of risk. FiscalNote Holdings is currently generating about -0.14 per unit of risk. If you would invest  48,183  in Gartner on September 1, 2024 and sell it today you would earn a total of  3,610  from holding Gartner or generate 7.49% return on investment over 90 days.

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

Gartner  vs.  FiscalNote Holdings

Gartner

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Gartner are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady basic indicators, Gartner may actually be approaching a critical reversion point that can send shares even higher in December 2024.

FiscalNote Holdings

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days FiscalNote Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's basic indicators remain rather sound which may send shares a bit higher in December 2024. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Pair Trading with Gartner and FiscalNote Holdings

The main advantage of trading using opposite Gartner and FiscalNote Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gartner 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 Gartner 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.