Correlation Between Coin Citadel and FiscalNote Holdings

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

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

Diversification Opportunities for Coin Citadel and FiscalNote Holdings

-0.04

Correlation Coefficient

Coin Citadel  FiscalNote Holdings

Good diversification

The 3 months correlation between Coin and FiscalNote is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Coin Citadel and FiscalNote Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FiscalNote Holdings and Coin Citadel 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 Coin Citadel 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 Coin Citadel i.e., Coin Citadel and FiscalNote Holdings go up and down completely randomly.

Pair Corralation between Coin Citadel and FiscalNote Holdings

Given the investment horizon of 90 days Coin Citadel is expected to generate 2.08 times more return on investment than FiscalNote Holdings. However, Coin Citadel is 2.08 times more volatile than FiscalNote Holdings. It trades about 0.06 of its potential returns per unit of risk. FiscalNote Holdings is currently generating about 0.01 per unit of risk. If you would invest  0.01  in Coin Citadel on May 3, 2025 and sell it today you would earn a total of  0.00  from holding Coin Citadel or generate 0.0% return on investment over 90 days.

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

Coin Citadel  vs.  FiscalNote Holdings

Coin Citadel

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Coin Citadel are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite quite unsteady basic indicators, Coin Citadel disclosed solid returns over the last few months and may actually be approaching a breakup point.

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 rather sound basic indicators, FiscalNote Holdings is not utilizing all of its potentials. The recent stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Coin Citadel and FiscalNote Holdings

The main advantage of trading using opposite Coin Citadel and FiscalNote Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coin Citadel 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 Coin Citadel 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.