Correlation Between FiscalNote Holdings and Gartner

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

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

Diversification Opportunities for FiscalNote Holdings and Gartner

0.65

Correlation Coefficient

FiscalNote Holdings  Gartner

Poor diversification

The 3 months correlation between FiscalNote and Gartner is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding FiscalNote Holdings and Gartner in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gartner 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 Gartner. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gartner has no effect on the direction of FiscalNote Holdings i.e., FiscalNote Holdings and Gartner go up and down completely randomly.

Pair Corralation between FiscalNote Holdings and Gartner

Given the investment horizon of 90 days FiscalNote Holdings is expected to generate 5.03 times more return on investment than Gartner. However, FiscalNote Holdings is 5.03 times more volatile than Gartner. It trades about -0.02 of its potential returns per unit of risk. Gartner is currently generating about -0.15 per unit of risk. If you would invest  115.00  in FiscalNote Holdings on December 29, 2024 and sell it today you would lose (26.00) from holding FiscalNote Holdings or give up 22.61% 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.  Gartner

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.

Gartner

Risk-Adjusted Performance

Very Weak

Over the last 90 days Gartner 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 comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with FiscalNote Holdings and Gartner

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

The idea behind FiscalNote Holdings and Gartner 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.