Correlation Between FiscalNote Holdings and Getty Images

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

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

Diversification Opportunities for FiscalNote Holdings and Getty Images

0.67

Correlation Coefficient

FiscalNote Holdings  Getty Images

Poor diversification

The 3 months correlation between FiscalNote and Getty is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding FiscalNote Holdings and Getty Images Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Getty Images Holdings 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 Getty Images. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Getty Images Holdings has no effect on the direction of FiscalNote Holdings i.e., FiscalNote Holdings and Getty Images go up and down completely randomly.

Pair Corralation between FiscalNote Holdings and Getty Images

Given the investment horizon of 90 days FiscalNote Holdings is expected to under-perform the Getty Images. In addition to that, FiscalNote Holdings is 1.47 times more volatile than Getty Images Holdings. It trades about -0.02 of its total potential returns per unit of risk. Getty Images Holdings is currently generating about 0.0 per unit of volatility. If you would invest  210.00  in Getty Images Holdings on December 29, 2024 and sell it today you would lose (17.00) from holding Getty Images Holdings or give up 8.1% of portfolio value over 90 days.

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

FiscalNote Holdings  vs.  Getty Images Holdings

FiscalNote Holdings

Risk-Adjusted Performance

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 latest unsteady performance, the Stock's basic indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

Getty Images Holdings

Risk-Adjusted Performance

Very Weak

Over the last 90 days Getty Images Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, Getty Images is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with FiscalNote Holdings and Getty Images

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

The idea behind FiscalNote Holdings and Getty Images 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.