Correlation Between FiscalNote Holdings and WELLTOWER

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

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

Diversification Opportunities for FiscalNote Holdings and WELLTOWER

0.68

Correlation Coefficient

FiscalNote Holdings  WELLTOWER

Poor diversification

The 3 months correlation between FiscalNote and WELLTOWER is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding FiscalNote Holdings and WELLTOWER INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WELLTOWER INC 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 WELLTOWER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WELLTOWER INC has no effect on the direction of FiscalNote Holdings i.e., FiscalNote Holdings and WELLTOWER go up and down completely randomly.

Pair Corralation between FiscalNote Holdings and WELLTOWER

Given the investment horizon of 90 days FiscalNote Holdings is expected to under-perform the WELLTOWER. In addition to that, FiscalNote Holdings is 5.04 times more volatile than WELLTOWER INC. It trades about -0.12 of its total potential returns per unit of risk. WELLTOWER INC is currently generating about -0.12 per unit of volatility. If you would invest  9,065  in WELLTOWER INC on September 13, 2024 and sell it today you would lose (674.00) from holding WELLTOWER INC or give up 7.44% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	96.83%
Values	Daily Returns

FiscalNote Holdings  vs.  WELLTOWER INC

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 January 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

WELLTOWER INC

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days WELLTOWER INC has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest unsteady performance, the Bond's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for WELLTOWER INC investors.

Pair Trading with FiscalNote Holdings and WELLTOWER

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

The idea behind FiscalNote Holdings and WELLTOWER INC 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.